PepsiCo is set to establish a new manufacturing plant in Tamil Nadu as part of its broader strategy to expand its presence in India’s rapidly growing snacks and beverages sector. The company has secured 28 acres of land in Mannaparrai, where it will produce popular snack items such as potato chips, according to a report by Hindu Businessline.
The decision aligns with the Tamil Nadu government’s push to develop four dedicated food parks in Mannaparrai, Theni, Nagapattinam, and Tindivanam. These parks aim to enhance the production and export of agro and processed foods, fostering economic growth in the state.
Capitalizing on India’s Booming Snack Industry
PepsiCo’s latest move comes as India’s snacks and beverages market is poised for significant expansion. According to a study by the International Market Analysis Research and Consulting Group (IMARC), the industry is expected to grow from ₹42,694.9 crore in 2023 to ₹95,521.8 crore by 2032.
Recognizing this potential, PepsiCo India is broadening its product portfolio and geographical reach by setting up manufacturing plants in multiple states. Apart from Tamil Nadu, the company has announced new plants in Madhya Pradesh and Punjab, further cementing its presence across the country. In 2023, PepsiCo inaugurated its first food manufacturing unit in Assam’s Nalbari.
Tailoring Offerings to India’s Diverse Consumer Base
PepsiCo’s leadership acknowledges India’s diverse taste preferences and is making strategic investments to cater to these varied demands. Eugene Willemsen, CEO of PepsiCo’s Africa, Middle East, and South Asia (AMESA) region, highlighted India as one of the fastest-growing markets for the company, reaffirming its commitment to expanding manufacturing capabilities.
Jagrut Kotecha, CEO of PepsiCo South Asia, also emphasized the need for a localized approach, stating that the company is keen on understanding regional taste preferences, demographic shifts, and the increasing focus on health and wellness. As PepsiCo deepens its roots in India, it aims to develop products that resonate with the country’s evolving consumer landscape.
