Pepsi to Make $5.5B Bet on India

by Burke Speaker | November 13, 2013 8:57 am

Pepsi to Make $5.5B Bet on India

Pepsi NOW Box O Logo Pepsi to Make $5.5B Bet on India[1]Just as other companies in the U.S. are beginning to do, PepsiCo (PEP[2]) 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.

From Reuters:[3]

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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/07/Pepsi-NOW-Box-O-Logo.png
  2. PEP: http://studio-5.financialcontent.com/investplace/quote?Symbol=PEP
  3. From Reuters:: http://in.reuters.com/article/2013/11/11/pepsico-india-idINL4N0IW30N20131111

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