How PepsiCo could help boost the Indian Economy

Yash Multani recently wrote a blog post about PepsiCo’s $5.5 bn investment in India. This venture was particularly interesting to read about due to the various stakeholders involved. Yash points out that it will benefit the Indian economy by employing from the vast pool of idle workers(creating up to 100,000 jobs), and he also identifies how it will benefit PepsiCo through reaching new customers in untapped market segments.

I agree with his analysis completely, but I also would like to add my thoughts on the matter. This inflow of FDI will do more to restore investor confidence in the region. Since India’s growth rate has slowed to 5%, the lowest its has been in a decade, some investors and analysts speculated that India would no longer be a favourable country for investment. Indeed Pepsico’s confidence in the nation will spark further interest. The range of products on offer from the corporation range from soft drinks, to juices, snacks and even breakfast cereals. While Pepsi cola itself is a beloved brand in India, this will open up opportunity for the company to market all of its brands to the consumer segments. It is a cost for Pepsico in the short term, but will most likely have far more positive long-term implications for the company.

Bollywood actors endorsing Pepsi over the years. Pepsi is a very popular brand in India and a household name.