by Burke Speaker | November 13, 2013 8:57 am
Just as other companies in the U.S. are beginning to do, PepsiCo (PEP) is investing in the emerging economy of India with a planned $5.5 billion push into the country within the next six years.
The move comes in part to offset rival Coca-Cola’s planned involvement in the region.
But additionally, PEP has seen sales increases from many products released by the company, including Pepsi and Frito-Lay snacks.
“India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo,” Chief Executive Officer Indra Nooyi said in a statement.
PepsiCo’s plans come after rival Coca-Cola Co, the world’s largest drinks maker, said in June last year it would invest a total of $5 billion between 2012 and 2020 to grow its business in Asia’s third-largest economy.
PepsiCo and Coca-Cola’s investments, driven by a growing middle class with higher disposable incomes, are likely to be welcomed by Indian officials who are trying to restore foreign investor confidence after growth has fallen to a decade-low.
In the third quarter, Pepsi reported some $16 billion in total revenue, with about half of that coming from foreign markets.
PepsiCo is up 25% year to date.
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