Whalesbook
Snacks Business to Drive Major Investment
PepsiCo plans to invest ₹5,700 crore in its Indian operations by 2030, focusing heavily on growing its successful snacks business. This funding will establish three new manufacturing plants in Madhya Pradesh, Assam, and Tamil Nadu, boosting production capacity across key areas. Jagrut Kotecha, PepsiCo's CEO for India and South Asia, confirmed the investment, underscoring a deep commitment to long-term expansion in the Indian market. This move is significant considering PepsiCo India's revenue reached ₹9,789 crore in the year ending December 2025, marking an 8% rise from the previous year. The food division saw strong growth, up about 11% in 2025.
India: High-Potential Market Amidst Competition
Despite global economic uncertainties and supply chain issues, PepsiCo sees India as a market with considerable growth prospects. This outlook is supported by rising consumer incomes and a stable economic environment. However, the Indian snacks and beverages market is very competitive. PepsiCo competes with established companies like Britannia Industries and Nestlé India, as well as strong new entrants such as Reliance Consumer Products (with its Campa brand) and Archian Foods (maker of Lahori Zeera). Reliance's Campa Cola, for instance, has used competitive pricing and its wide retail network to challenge existing players. Archian Foods has also raised substantial funds to expand its production and reach in the beverage sector.
Market Context and Competitive Landscape
The Indian savory snacks market is a major sector, valued at roughly USD 253.21 billion in 2025 and expected to grow at a compound annual rate of 6.03% until 2030. PepsiCo currently holds a dominant 49.86% share in India's savory snacks market with popular brands like Lay's, Kurkure, and Doritos. In 2023, PepsiCo India invested an additional INR 186 crore to expand its food plant in Mathura, bringing the total investment there to INR 1,022 crore to meet demand for brands like Lay's and Kurkure. This expansion strategy aligns with broader market trends, such as Haldiram's INR 700 crore investment in new manufacturing facilities.
Valuation and Financial Performance
PepsiCo Inc. (PEP) has a current P/E ratio of approximately 23.4, reflecting investor confidence but slightly exceeding the industry average of 22.88. For the 12 months ending December 2025, PepsiCo India Holdings reported total revenue of ₹9,798 crore, an 8% increase, and a net profit of ₹905 crore, up 4.5%. While the snacks business grew by 11% in 2025, the beverages segment faced challenges from unusual rainfall and increased competition. Globally, PepsiCo's convenient foods business saw a 4% organic revenue increase in Q2 2025, partly driven by its performance in India and other regions.