Priyanka Tiwari
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PepsiCo is expanding its presence in India's packaged food market, focusing on catering to diverse regional tastes. According to Jagrut Kotecha, CEO of PepsiCo India & South Asia, the company is betting on innovation and premiumization to sustain its double-digit growth.
Kotecha emphasized that India's snack consumption remains significantly lower than other global markets. However, with increasing urbanization and rising disposable incomes, the demand for packaged food is expected to grow rapidly.
PepsiCo Adopts a Regional Approach for Product Customization
To align with India’s diverse taste preferences, PepsiCo has divided the country into nine regional clusters. Each cluster represents unique culinary preferences, ensuring that the company tailors its products to match local tastes.
"If you say it's just one India, I think we are not doing enough justice to it. You need to design your portfolio keeping in mind that India consists of multiple Indias," said Kotecha.
The company is investing significantly in consumer research to understand flavor trends, health preferences, and regional ingredients. PepsiCo aims to integrate these insights into its product development strategy.
Expanding Manufacturing Footprint in India
PepsiCo currently operates manufacturing plants in:
- Mathura, Uttar Pradesh
- Channo, Punjab
- Ranjangaon, Pune
- Sankrail, West Bengal
Additionally, the company’s new plant in Assam will be operational this year. Plans are also in place for two more greenfield manufacturing facilities, including one in South India to meet rising regional demand.
Growth in Food Segment & Competitive Landscape
The food segment contributes nearly 80% of PepsiCo India's revenue, with brands like Lays, Kurkure, Doritos, and Quaker driving sales. Despite facing competition from homegrown brands like Marico in the oatmeal category, Quaker continues to lead the base oatmeal segment in India.
"Health and wellness is a strong growth trend. We have been growing Quaker in double digits, and while Saffola leads in the flavored variety, we remain the leader in base oatmeal," said Kotecha.
Innovating for Regional Tastes and Ingredients
PepsiCo is actively customizing its products based on regional taste preferences. Lays Magic Masala, for example, differs in flavor across different parts of India:
- Northern India: Stronger masala flavor
- Western India: Slightly sweeter profile
- Southern India: Spicier variant
Even cooking oils vary by region:
- East India: Mustard oil
- South India: Sesame oil (gingelly oil)
Additionally, snack ingredients are adapted:
- South India: Rice-based snacks
- Western & Central India: Besan-based snacks
This localized approach helps PepsiCo connect with Indian consumers by offering region-specific flavors.
Sourcing from Indian Farmers & Agro R&D Investments
PepsiCo works closely with 30,000 potato farmers across states like:
- Punjab
- Gujarat
- West Bengal
- Madhya Pradesh
- Assam (a new sourcing hub)
The company procures over 400,000 tons of chip-grade potatoes annually and has established an agro R&D facility in Zahura, Punjab, focusing on potato breeding and sustainable farming.
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