PepsiCo India intends to invest Rs 1,266 crore to establish a new flavour manufacturing facility in Ujjain, Madhya Pradesh. The 22-acre plant is poised to be pivotal in ramping PepsiCo’s beverage production in India.

Additionally, the company highlights that this venture will generate employment opportunities and contribute positively to the local economy. PepsiCo’s beverage bottling in India is mainly handled by Varun Beverages Ltd, one of the company’s largest bottlers worldwide.

PepsiCo’s New Flavour Facility Construction to Commence in 2024

PepsiCo India plans to kickstart constructing its upcoming flavour manufacturing plant in Madhya Pradesh in 2024. The facility is projected to become operational by the first quarter of 2026.

“With the backing of the Madhya Pradesh government, our goal is to expand our presence and make a meaningful contribution to the socio-economic development of the region,” stated PepsiCo India & South Asia CEO Jagrut Kotecha.

PepsiCo’s New Plant Set to Begin Construction in 2024

PepsiCo India plans to start building its new plant in Madhya Pradesh in 2024, with operations expected to commence by the first quarter of 2026.

“With support from the Madhya Pradesh government, we aim to expand our presence and make a positive impact on the region’s socio-economic development,” said PepsiCo India & South Asia CEO Jagrut Kotecha.

George Kovoor, Senior Vice President of Beverages at PepsiCo India, stated, “This new facility will be our second flavour manufacturing plant in India. We’re focused on increasing beverage production to meet growing demand. This investment reinforces our commitment to delivering high-quality beverages and promoting sustainable practices.”

Sustainability at PepsiCo’s New Plant

PepsiCo’s first flavour manufacturing facility in India is in Channo, Punjab. Now, the company is gearing up to establish another plant in Madhya Pradesh, aiming for sustainability every step of the way.

The new facility will run entirely on renewable energy sources that align with global sustainability goals. This switch will significantly reduce carbon footprint by an impressive 1.9 metric tonnes daily. Moreover, the plant aims for around 90% overall water efficiency with zero liquid discharge technology. This means responsible water management, with the plant replenishing 100% of its water. It’s a big step towards conserving water resources and promoting sustainability.

Investment Trends in India’s Food and Beverage Sector

PepsiCo’s latest announcement is part of its bigger plan to boost production in India’s growing packaged food and beverage industry. This move mirrors a trend among multinational companies like Nestle and Mondelez, who are also increasing their investments in India due to higher demand for their products. For example, Nestle recently opened a food processing unit in Odisha worth ₹894.10 crore. On the other hand, Mondelez has committed ₹4,000 crore investment in India over four years.

PepsiCo India is no stranger to such investments. Last year, it announced a ₹778 crore investment to build a food manufacturing plant in Assam, set to start operating in 2025. In 2022, PepsiCo India pledged ₹186 crore to expand its largest greenfield food manufacturing facility in Kosi Kalan, Mathura, Uttar Pradesh, known for producing Lay’s potato chips.

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