PepsiCo plans to foray into dairy segment

PepsiCo India, the maker of Quaker oats, Lays chips and Pepsi Cola, is looking to enter the country's growing dairy market.

With consumption of carbonated soft drinks such as colas going down, the company is keen to increase the share of healthy products in its portfolio. 

While growth has remained muted (low single digit) in the Rs 14,000-crore domestic soft drinks market, the dairy segment, pegged at around Rs 99,000 crore, has grown by 13% in 2016 over 2015, according to Euromonitor.

Vipul Prakash, Senior Vice-President (Beverage Category), PepsiCo India, said, "We are definitely looking at dairy, especially value-added products. But it won't be just flavoured milk."

PepsiCo India's largest bottler Ravi Jaipuria, who also sells Cream Bell ice-cream, is betting on the dairy market with value-added products.

Prakash acknowledged that sales of soft drinks have been slowing down in the country. He attributed it to the maturing of the domestic beverage market.

Prakash said, "I would be worried if the size of the beverage market had been shrinking. But that is not the case. 

A consumer has more choice today than what he had a few years ago, so he may be picking up products other than a sparkling beverage to satiate his drinking needs at different times during the day."