Page 30 - IACC Newsletter October November 2013 Issue 13

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US investments in India
New York based PepsiCo plans largest India plant at Sri City, invests 450 crore on
their first phase of the project.
Plans investment of Rs 1,230 crore; Phase I to be ready by next year
PepsiCo India will set up a new beverage plant, poised to be the largest such factory for the company in India, at Sri City
industrial park, close to the Andhra Pradesh-Tamil Nadu border.
Coming up on 80 acres, the first phase of the project entails an investment of Rs 450 crore and would be operational by
the third or fourth quarter of the next financial year, according to D Shivakumar, chairman and managing director, who
took charge 10 days ago.
This is part of a three-phase investment of Rs 1,230 crore in the factory, with the final phase proposed to be completed by
2018, he said.
Chief Minister N Kiran Kumar Reddy formally laid the foundation stone for the plant at a function held here recently. The
new plant is also part of the global beverages player’s recent announcement that it was going to make a new investment
of Rs 33,000 crore in the country, with its partners, by 2020.
The plant would produce the full range of beverages — carbonated drinks, fruit-based drinks and sports drinks. Each of the
three phases will have a production capacity of around 1.2 million liters a day.
Shivakumar said the plan to set up a much larger plant in Andhra Pradesh signified not just the presence of a strong local
market but also the growth at large in the country.
“India is a high priority market for PepsiCo and there are lots of opportunities to expand our food & beverage business in
the coming years. This is the physical manifestation of our commitment towards investment in the country,” he said.
The company is also planning to make this location as the national hub for sourcing mango pulp, given the large numbers
of mango orchards in Andhra Pradesh. “We plan to increase pulp procurement from Andhra Pradesh for all our plants and
the state could become a national hub for mango pulp, thus benefiting around 60,000 farmers across Chittoor, Prakasam
and Nellore districts,” Shivakumar said.
PepsiCo already has a beverage plant at Sangareddy near Hyderabad, which supplies to the state and neighboring
Karnataka. The company, which refused to share the revenue or the market share figures, said eight of its brands generate
around Rs 1,000 crore each in revenues in India.
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Xander set to acquire stake in Bangalore mall project for Rs 450 crore
Xander Group, the US-based private equity major with multi-billion dollar assets under management, is understood to be
close to clinching a deal with a Bangalore-based developer for acquiring a significant stake in a commercial retail space
being developed on the Bannerghatta Road for close to Rs 450 crore.