Cricket Entertainment: Indian Cola market

Chairman and CEO of American cola giant, Pepsi Co. Inc. (NYSE:PEP), Indra Nooyi, declared to invest half billion dollar in the next three years in India. To understand the potential of the Indian market, twenty six members of Pepsi Co’s executive committee have come to India. For the first time, the company’s executive committee meeting will be held in India. Ms. Nooyi said:

“As a tangible sign of our continued confidence in India, I'm delighted to announce that we are expecting to invest a further USD500 million over the next three yrs with the goal of tripling our business here. This investment will create additional 50000 jobs.”

The half billion dollar investment will be used in increasing manufacturing capacity, building strong a marketing infrastructure, research and development, and sustainability.

Ms. Nooyi took over Pepsi Co. in 2006. Since then, she has been trying to rebuild Pepsi Co’s image as a responsible company that comes with products for all kinds of consumers. Indra Nooyi has been aggressively promoting health products because she believes that health drinks is the future market and she wants to be the first one with new products.

For the Indian market, Ms. Nooyi said that her company wants build up a strong market share in health drinks and aerated drinks sector. The former will be labeled as good-for-you products which will make up 30% of Pepsi Co’s product line and the later, fun-for-you will be 80%.

Useful links:

http://www.forbes.com/lists/2006/11/06women_Indra-Nooyi_1S5D.html

http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Food/Pepsi_plans_a_500-million_splash_in_India/articleshow/3510797.cms