PepsiCo India has announced plans to open a snacks manufacturing plant in the Indian state of Uttar Pradesh (UP) with an investment of Rs5.14bn ($74m) over the next three years.
PepsiCo’s senior leadership team signed a memorandum of understanding (MoU) with representatives of the UP Government.
The company’s latest investment in the greenfield manufacturing plant is reported to be in line with its strategy to double its snacking business in the country by 2022.
PepsiCo India president and CEO Ahmed ElSheikh said: “PepsiCo is committed to growing its food and beverage business sustainably in India.
“We have a long relationship with the people of Uttar Pradesh. As we look to double our snacks business over the next few years, we intend to invest Rs5.14bn ($74m) approximately to expand our footprint in Uttar Pradesh.”
Upon completed, the snack manufacturing facility is expected to create 1,500 direct and indirect employment opportunities in the region.
As part of this project, the company said it would expand its backward integration with local farmers and enable socio-economic growth for potato farmers in the state by introducing the latest agricultural practices.
In order to enable the supply chain, PepsiCo India also plans to set up a cold storage facility.
Currently, PepsiCo’s snacks are sold under various brands, including Kurkure and Lays.
The company is also planning to add new flavours and region-specific variants to its snack brands.
In January 2016, PepsiCo India announced plans to streamline its snacks portfolio to create two master brands with a goal to seize a significant share of the country’s snacks market.
