PepsiCo India to invest ₹1,266 crore to set up flavour manufacturing facility in MP

Leading snacks and beverage company, PepsiCo India, on Tuesday said it is investing ₹1,266 crore to establish a state-of-the-art flavour manufacturing facility in Ujjain, Madhya Pradesh. This will be the company’s second flavour manufacturing facility in India and it said this will enable it to manufacture beverage flavours ‘In India, for India’. 

The construction of the upcoming plant is slated to start this year and it is expected to be operational in the first quarter of 2026. Spread over 22 acres, this plant will play a significant role in scaling up PepsiCo’s beverage production in India, it added. 

Jagrut Kotecha, Chief Executive Officer, PepsiCo India & South Asia, said that the flavour manufacturing facility in the country underscores PepsiCo’s commitment to scaling its business operations in India.

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“With support from the government of Madhya Pradesh, we aim to strengthen our footprint while driving impactful progress in enhancing the socio-economic landscape of the region. Bolstering the ‘Make in India’ vision, the new flavour manufacturing facility will champion sustainability, aligning with our ‘Winning with pep+’ philosophy, creating a positive value chain while delivering on our promise of continuous innovation in our products,” Kotecha added. 

George Kovoor, Senior Vice President, Beverages, PepsiCo India, said, “We aim to ramp up the production of our beverages to meet the rising demand in the country. This strategic investment not only strengthens our dedication to providing the highest quality beverages to our consumers but also reinforces our responsibility to drive sustainable practices across our operations.”

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PepsiCo’s first flavour manufacturing facility in India is in Channo, Punjab. With its second plant, the company aims to fortify the presence of its flavour facility in India, it added.

The company currently has five operational manufacturing facilities. Besides the plant announced in MP, another new facility is also being built in Assam.

The company added that the upcoming manufacturing facility in MP will operate on renewable energy sources leading to a reduction in carbon footprint. Additionally, it will use Zero Liquid Discharge technology and said the plant aims to achieve approximately 90 per cent overall water efficiency.

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