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Wednesday, Nov 13, 2002

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Corporate - Restructuring

PepsiCo moves to create regional market units

Our Bureau

NEW DELHI, Nov. 12

SOFT drinks major PepsiCo India Holdings has undertaken an exercise to reconfigure its existing regional management structure.

According to a Pepsi official, the organisation structure within the company's market units is being reconfigured, and five market units are being defined according to regions. In addition to the North, East, West and South market units, a Central Market Unit has also been defined.

According to Mr Jeswant Nair, Executive Director (Human Resources), Pepsi India Holdings, the intermix of company-owned bottling operations (COBOs) and franchisee owned bottling operations (FOBOs) within the market units will help in providing a senior resources pool of line and staff managers, impact both COBOs and FOBOs, and enable transference of best practices both ways. "We are leveraging on constructing regions to better utilise our resources," Mr Nair said.

"The previous COBOs/FOBOs organisations cut across disparate territories and helped in building a substantial distribution network. The organisation structure in the market units is being reconfigured to reflect geographic continuity and tap new market opportunities," a Pepsi official said.

The objective of the exercise, the official added, was to increase distribution of the company's products, gain greater flexibility to leverage resources and share best practices.

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