PepsiCo to Set up Manufacturing Plant in Tamil Nadu as It Pins Hope on Indian Snacks Market

PepsiCo is planning to set up a manufacturing plant in Tamil Nadu to expand its presence in the Indian snacks and beverages market. The American company has been alloted 28 acres of land in the state’s Mannaparrai to produce snacks like potato chips, the Hindu Businessline reported, citing sources. 

The move is likely because of the Tamil Nadu government’s push to develop four food parks in the state, namely in Mannaparrai, Theni, Nagapattinam and Tindivanam. Through these parks, the government is focusing on boosting production and export of agro & processed foods.

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What’s Behind PepsiCo’s Expansion  

This comes at a time when the Indian snacks and beverages industry has become one of the most happening markets, as it is projected to nearly double in size from Rs 42,694.9 crore in 2023 to Rs 95,521.8 crore by 2032, according to the International Market Analysis Research and Consulting Group (IMARC) study. 

PepsiCo India is eyeing to cash in on this projected growth. The snacks maker is expanding both in terms of its offerings and geographically in India to set up manufacturing plants across different states in the country.

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Apart from Tamil Nadu, PepsiCo India announced the setting up of manufacturing plants in Madhya Pradesh and Punjab last year to strengthen its footprint in India. In 2023, the Kurkure maker had announced to open its first food manufacturing plant in Assam’s Nalbari. 

“India is amongst the fastest growing markets for PepsiCo in AMESA region, and we are committed to invest in the nation to build capacity,” PepsiCo AMESA region CEO Eugene Willemsen had said earlier, according to PTI. 

A few weeks back, the snacks maker announced that it is making significant investments to cater to multiple Indias with diverse taste buds, including India’s rich heritage of food, unique cooking style, beverages and drinks. 

“You need to design your portfolio, keeping those consumers of India like multiple Indias,” PepsiCo South Asia CEO Jagrut Kotecha told PTI. The Kurkure maker is reportedly trying to understand the trends in India, especially in terms of taste, demographics, health and wellness, Kotecha added.