Hotline: 1800 102 2007
X
Search Business Opportunities
Oct, 03 2018

PepsiCo India makes profit in the country after 7 years

The profit was driven by cost-efficiency measures, high-margin products and higher capacity utilization.

Beverage and snacks maker PepsiCo India has made a profit in 2017-18 after a gap of seven years. The profit was driven by cost-efficiency measures, high-margin products and higher capacity utilization.

PepsiCo has reported a net profit of Rs 190 crore in 2017-18. The company posted a loss of Rs 148 crore a year previously. The last profit PepsiCo reported was in 2010-11. The beverage company exited the fourth quarter of 2017-18 with double-digit growth momentum.

Rajdeep Datta Gupta, Chief Financial Officer of PepsiCo India, said, "Focus on profitable channels, packs and innovation, cost management and productivity to offset inflation, local agriculture programmes and procurement for citrus and corn, and maximising capacity utilisation were factors that brought balanced growth."

PepsiCo launched 80 products and variants, including flavours, pack sizes and packaging between 2015 and 2018. Out of its products, Lay's, Kurkure, Quaker and Doritos were the key growth drivers. The new high-margin products like Pepsi Black and energy drink Sting also showed 'encouraging results'.

New York-based Purchase's India unit said in 2016 that it was taking a three-year reset to transform its portfolio for sustainable and profitable growth. It has rationalised its portfolio for operational productivity as well as reinvested in marketing expenses.

"Higher capacity utilisation is helping leverage cost lines. Strong cost-management is offsetting the inflation that we are seeing," Gupta said.

Comment
image
Related opportunities
  • Bakery & Confectionary
    About Us: Eat Confetti has unique recupes that have never been..
    Locations looking for expansion Delhi
    Establishment year 2018
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Ice creams & Yogurt Parlors
    About Us: Makers of Milkshakes thrives on the cravings of the..
    Locations looking for expansion Telangana
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Hyderabad Telangana
  • Precious Jewellery
    About Us: Established in 1993 in Uttarakhand, Silveria Jewellers is India's..
    Locations looking for expansion Delhi
    Establishment year 1993
    Franchising Launch Date 2018
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Other Vocational Training
    Established in 2007, Patsav is India's Award Winning Top Pro..
    Locations looking for expansion Telangana
    Establishment year 2007
    Franchising Launch Date 2019
    Investment size Rs. 10lac - 20lac
    Space required 400
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Hyderabad Telangana
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities