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PepsiCo Chairman and Chief Executive Officer Indra Nooyi on Monday announced the company will invest about $5.5 billion to grow its business in India between now and 2020, following a similar investment announced by arch rival Atlanta-based Coca-Cola last year.
PepsiCo is trying to regain market share lost to Coke in recent years in the highly competitive Asian market. According to Euromonitor data, Coca-Cola's share of the carbonated soft drink market was nearly 61 percent in India last year, compared 36.4 percent for PepsiCo.
"India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo," Nooyi, on a two-day visit to India, said in announcing the investment." Coca-Cola said it had no comment on PepsiCo's plans.
Coca-Cola announced last year it planned to invest $5 billion in India by 2020 to boost growth - more than double the $2 billion invested since re-entering the market in 1993. Coke left the country in 1977 to avoid divulging its secret formula and handing over control of the company’s local operations to an Indian subsidiary.
Coke’s Thums Up brand, acquired in 1993, and Sprite are the most popular carbonated beverages in India. PepsiCo’s flagship soft drink is more popular than Coca-Cola’s flagship soda.
According to The Economic Times, Nooyi, who was born in India, said her company has spent “a lot of money” to grow “organically” in India while Coke has grown by acquiring brands such as Thums Up. She added there were other “big differences” between the two rivals, asserting in New Delhi that Pepsi is for “younger people” while Coke is for the “older” set, according to The Economic Times.
"There is a great comparison which says Pepsi is a timely brand and the other brands are timeless brand,” Nooya said in a swipe at Coke. “So one is for the older people [and] one is for the younger people."
PepsiCo to invest $5.5B in India, following Coca-Cola's plans | The Biz Beat | www.ajc.com
PepsiCo is trying to regain market share lost to Coke in recent years in the highly competitive Asian market. According to Euromonitor data, Coca-Cola's share of the carbonated soft drink market was nearly 61 percent in India last year, compared 36.4 percent for PepsiCo.
"India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo," Nooyi, on a two-day visit to India, said in announcing the investment." Coca-Cola said it had no comment on PepsiCo's plans.
Coca-Cola announced last year it planned to invest $5 billion in India by 2020 to boost growth - more than double the $2 billion invested since re-entering the market in 1993. Coke left the country in 1977 to avoid divulging its secret formula and handing over control of the company’s local operations to an Indian subsidiary.
Coke’s Thums Up brand, acquired in 1993, and Sprite are the most popular carbonated beverages in India. PepsiCo’s flagship soft drink is more popular than Coca-Cola’s flagship soda.
According to The Economic Times, Nooyi, who was born in India, said her company has spent “a lot of money” to grow “organically” in India while Coke has grown by acquiring brands such as Thums Up. She added there were other “big differences” between the two rivals, asserting in New Delhi that Pepsi is for “younger people” while Coke is for the “older” set, according to The Economic Times.
"There is a great comparison which says Pepsi is a timely brand and the other brands are timeless brand,” Nooya said in a swipe at Coke. “So one is for the older people [and] one is for the younger people."
PepsiCo to invest $5.5B in India, following Coca-Cola's plans | The Biz Beat | www.ajc.com
