The Hindu Business Line : `India a rising star for PepsiCo's growth'

INDIA is fifth in terms of revenue worldwide for PepsiCo, said Ms Indra Nooyi, President, Chief Financial Officer and member of the board of directors of the company, during her interaction with editors in the Capital today.

Calling India the "rising star" in the company's priorities in terms of growth, she announced an investment of $300 million to $500 million in the next few years. She recalled how the company's first investments here had been in agriculture in Punjab 15 years ago and since then it had invested $700 million.

The fresh investments, she said, were to be in both segments - 60 per cent in beverages and 40 per cent in snacks. Though the environment in the US had been "difficult" in the recent past, the company had clocked $27 billion and was slated to cross the $30-billion mark soon, she said emphasising that it was one of the only companies in the US on the New York exchange with a double-digit growth.

Ms Nooyi attributed a large part of this success to PepsiCo International that has performed extremely well, especially in the two emerging markets of India and China.

India, however, has been more problematic for PepsiCo than China with the pesticide controversy raising its head a while ago and the new Integrated Food Law on the anvil. Ms Nooyi said that she was all for a comprehensive food law, but she felt it should encompass all food labelling and not be only for carbonated soft drinks. "Ours are the safest beverages in the world and there is no product safer than ours in the country," she said, "and still we found ourselves in the middle of a controversy. I'd like to reiterate that our products here are of the same quality standards as in the world. Let's label all products. I am happy to see that the administration is going about it in a scientific way," she said.

India, from where Ms Nooyi herself comes, is an important human resource centre for PepsiCo. In fact, a large part of the company's Chinese operations is manned by Indian executives, Ms Nooyi revealed, while worldwide too Indian talent is given the top billing. Comparing India with China, she said that if in terms of market development China was 10 on a scale, previously India used to be two or three. However, it was now going up slowly and developing in a democratic way, while China was still on the high growth path.

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