pepsi india

8/3/2019 Pepsi India

1/4

PepsiCo India Holdings Pvt Ltd - SoftDrinks - India

Euromonitor International : Local Company Profile

January 2011


2/4

PepsiCo India Holdings Pvt Ltd - Soft Drinks India

Euromonitor International Page i

List of Contents and Tables

Strategic Direction .................................................................................................................................................. 1Key Facts ................................................................................................................................................................. 1

Summary 1 PepsiCo India Holdings Pvt Ltd: Key Facts ...................................................................... 1

Company Background ............................................................................................................................................ 1Production ............................................................................................................................................................... 1Competitive Positioning .......................................................................................................................................... 2

Summary 2 PepsiCo India Holdings Pvt Ltd: Competitive Position 2010 ............................................ 2


3/4


Euromonitor International Page 1

PEPSICO INDIA HOLDINGS PVT LTD

STRATEGIC DIRECTION

PepsiCo India is one of the largest players in packaged foods and soft drinks in India. In 2010, PepsiCoacquired the approval of the Foreign Investment Promotion Board (FIPB) for additional equity investmentof US$200million in its Indian operations. The bulk of this investment is expected to be dedicated to themanufacturing and health and wellness branding of its beverages in the country.

In 2009, the companys beverage business achieved its highest volume growth in a decade. This has notonly attracted more investment, but highlights the importance of having a diverse portfolio. Although theresults were driven by the growth in its fruit/vegetable juices and bottled water for much of the reviewperiod, carbonates played a major role in 2009 and 2010 in volume growth.

KEY FACTS

Summary 1 PepsiCo India Holdings Pvt Ltd: Key Facts

Full name of company: PepsiCo India Holdings Pvt Ltd

Address: 3B DLF Corporate Park, S Block, Qutab EnclavePhase III, Gurgaon 122002, Haryana, India

Tel: +91 (124) 2880699

www: www.pepsicoindia.co.in

Activities: Carbonates, fruit/vegetable juice, sports and energydrinks, bottled water

Source: Company website, company research

COMPANY BACKGROUND

PepsiCo India Holdings was set up in 1989 as a wholly-owned subsidiary of PepsiCo Inc.

PepsiCo India has a product range spanning most types of soft drinks present in India. As of 2010, thecompany had significant off-trade value shares in carbonates, fruit/vegetable juices, bottled water and sportsdrinks. PepsiCos packaged foods division operates under the Frito-Lay banner.

The company has a pan-India presence with its well-established network of manufacturing plants,distribution centres and logistics capabilities.

Nimbooz by 7-Up continued to post strong volume growth in 2010 as the nimboo pani category under juice

drinks grew at breakneck speed. Competition in this product type has intensified with launches of ParleAgros LMN and Coca-Colas Minute Maid Nimbu Fresh.

In 2010, the company introduced two major products in India, Pepsi Max and Gatorade Sports Mix. PepsiMax - the low-calorie, no-sugar cola carbonate - was positioned as a macho brand on the lines of carbonatesleader Thums Up. Gatorade sports mix introduced PepsiCo to powder concentrates. The powder formatclaims to cut down the unit price of Gatorades current ready to drink (RTD) format by around 50% makingthe brand much more affordable.

PRODUCTION

The company caters to the domestic market via 36 bottling facilities, which includes 13 company-ownedand 23 franchise-owned operations. PepsiCos Frito Lay foods division also has three state-of-the-art plants.

The company exports some products to neighbouring markets. It is not known to undertake third partymanufacturing.


4/4


Euromonitor International Page 2

In keeping with continuous efforts towards environmental sustainability, PepsiCo claimed in 2010 that ithad reduced its water usage from 7.1 litres per litre of sold beverage in 2001 to 2.4 litres in 2010.

COMPETITIVE POSITIONING

With a sizeable off-trade value share of 24%, PepsiCo occupied second position among soft drinks playersin 2010. This position was primarily down to its consistently strong presence as well as growth in allinvolved categories. As is the case with its largest competitor in Indian soft drinks, the companys overalloff-trade value share declined gradually in the review period due to it deriving a significant chunk of sales(60% in terms of off-trade value) from the traditionally slow growing carbonates.

Although carbonates is still the major soft drinks category for PepsiCo, the company is progressivelymarketing its offerings in fruit/vegetable juices, sports and energy drinks, and bottled water. Non-carbonated soft drinks, and especially juice drinks, are expected to be the potential drivers for forecastperiod growth.

PepsiCo positions its products in the mid-priced and premium segments. While Gatorade and Tropicana arepositioned at the premium consumer, almost all other brands focus on the mid-range consumer.

PepsiCo has been active in updating its marketing campaigns as well as branding of some of its products in2010. Launched in 2008, the Youngistaan (young generation) campaign for Pepsi added anotherdimension with a high degree of employment of cyberspace in its promotion. The Indian youth segmentwas also targeted with the MyCan, MyWay campaign focused on Pepsis new packaging in 2009. Thecompany is also looking to expand the retail presence of its juice drinks Slice along with revamping its 7-Up brand in 2010.

Summary 2 PepsiCo India Holdings Pvt Ltd: Competitive Position 2010

Product type Off-trade value share Rank

Carbonates 36% 2

Fruit/vegetable juice 21% 3

Bottled water 14% 2

Sports and energy drinks 12% 2

Source: Company research, trade press (The Hindu Business Line), trade interviews, Euromonitor Internationalestimates

pepsi india

Documents