PepsiCo, Inc. (NYSE:PEP) will spend about $5.5 billion between now and 2020 to expand its operations in India as part of a larger effort to bolster sales in emerging markets, the company announced.
The expansion coincides with an economic slowdown in India,
where output growth has slowed to its lowest level in a decade,
spooking some investors, the Wall Street Journal reports.
PepsiCo Chairman and Chief Executive Indra Nooyi on Monday called the investment a “vote of confidence in India’s future.”
The announcement follows a similar claim by The Coca-Cola Company (NYSE:KO), PepsiCo's top rival, which said last year that it would invest $5 billion in India by 2020.
PepsiCo will double its manufacturing capacity and improve
its distribution network in rural areas while developing products geared
toward Indian tastes. While the Purchase, N.Y.-based company doesn’t
publicize sales and earnings by country, it said that eight of its big
brands in India generate annual sales of more than $1.26 billion.
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