India will be the engine of growth, says CEO Jagrut Kotecha as PepsiCo bets big on India

PepsiCo is making an aggressive push in India, aiming to double its revenue over the next five years as it identifies the country as a critical growth market. The food and beverage giant sees India as a key driver of global revenue, experiencing double-digit growth and ranking among its top three markets worldwide, said Jagrut Kotecha, CEO of PepsiCo India & South Asia.

“We believe India will be the engine of growth for PepsiCo,” Kotecha said in an interview to PTI. PepsiCo is backing its ambitions with significant investments, recently setting up new manufacturing plants in Uttar Pradesh and Assam. The company has no plans to slow down, with two additional facilities in the pipeline, including one in southern India. Over the past three years, PepsiCo has invested nearly Rs4,000 crore in the Indian market.

India is among 13 to 15 “anchor markets” PepsiCo has identified for substantial future growth. The country is poised to climb higher in the company’s global rankings, though Kotecha declined to specify projections. 'We need to double down and continue investing aggressively to capture the opportunity,' he said.

The company’s Indian operations revolve around three strategic pillars: expansion at scale, sustainability, and localized offerings. PepsiCo has divided India into nine clusters based on taste preferences and is integrating sustainable practices into its operations. The company reported double-digit organic revenue growth last month, driven by strong performances in the snack and beverage segments.

PepsiCo’s bottling partner, Varun Beverages Ltd. (VBL), is also investing heavily, operating 41 plants and increasing capacity by 25% this year alone.

India’s $12 billion beverage market is expanding at a compound annual growth rate of 10-11%, attracting new players like Reliance’s Campa Cola, which is disrupting the space with competitive pricing. Kotecha welcomed the competition, saying it would drive category growth and encourage more consumers to shift from unbranded products.

PepsiCo’s India portfolio includes brands such as Lay’s, Kurkure, Quaker, and Doritos in the snack segment, and Mountain Dew, 7UP, Pepsi, and Tropicana in beverages. Currently, food products contribute about 80% of the company’s revenue in India, with beverages accounting for the rest. With steady investments and a growing market, PepsiCo is positioning itself as a dominant player in India’s evolving food and beverage landscape.