PepsiCo India to invest Rs 5,700 crore by 2030 to boost production

PepsiCo India is set to invest a substantial Rs 5,700 crore by 2030 to expand its production capacity and strengthen its market presence, particularly in the fast-growing food and beverage sector across India.

Given India’s potential as a growing market for food and beverages, fast-moving consumer goods (FMCG) company PepsiCo India will invest Rs 5,700 crore until 2030 to increase its production capacity.

The investment will be in its concentrate plant in Madhya Pradesh, its unit in Assam, and land purchase, which it has done in Tamil Nadu, allowing the FMCG major to gain its footprint in the south for its snack business, said Jagrut Kotecha, chief executive officer, PepsiCo (India & South Asia), at a roundtable.

Strong Growth and Market Potential

“We’re happy to state that for the second year, we’ve got some good, strong double-digit growth … PepsiCo India is part of the top 13 markets for PepsiCo … and PepsiCo looks at us as a market of potential,” Kotecha said.

In 2025, PepsiCo India’s revenues stood at Rs 9,798 crore, up 8 per cent over the figure for the previous year, and its profit after tax stood at Rs 905 crore, which, the company said, was driven by strong growth in its food portfolio.

Savitha Balachandran, chief financial officer, PepsiCo (India & South Asia), said: “In the food segment, revenues grew at about 11 per cent, and that growth has been strong and broadbased across our portfolio.”

Financial Performance and Challenges

“We had earnings before interest, tax, depreciation and amortisation of about Rs 1,580 crore, giving a margin of about 16.4 per cent, and a profit after tax of about Rs 905 crore, which is around a 9.4 per cent margin.

"But an important thing to note is that this also had the exceptional effect of the wage Code, which came into effect last year.

"And therefore, if you do take away that impact, you’ll see that the margins are very much in line with what growth in the top line has been,” she said.

While talking about the beverage performance, she said, the company saw some headwinds due to weather factors and also competition intensity increased.

“But action on price packs and intervention that we did in that space helped us to hold on to our revenue profile,” Balachandran said.

Innovation and Market Adaptation

Kotecha said the company had been evolving and growing that capability over the past two years, which allowed PepsiCo in India to become sharper and granular.

This, he said, is anchored in some of the innovations the company has done like “Jowar Puffs” under the “Kurkure” brand.

This, it realised, is big, especially in some geographies, and added that it was not a national product but a localised and traditional product for many markets.

“In beverages, we’ve realised that hydration is a big space along with energy.

"That’s when we’ve accelerated our portfolio on Nimbooz and even in energy, there is a need for premium-energy drinks where we’ve launched AdRush,” Kotecha said.

“We’ve built some of these platforms last year, which is giving us some great early results, and we’ll continue to invest as we go forward.”

Kotecha said now with quick commerce and ecommerce coming in, the company had been pivoting in the last two years and investing across channels because, for the company, all were growing.

Strategic Takeaways

Investment to support the concentrate plant in Madhya Pradesh, northeast plant in Assam, land acquisition in Tamil Nadu to expand snacks footprint in South India.

PepsiCo India’s total revenue rose 8% Y-o-Y to Rs 9,798 crore in 2025.