PepsiCo India strengthens “Partnership with farmers” in Rajasthan

Company Brief

Sriganganagar, May 05, 2008

In yet another initiative to strengthen its commitment of ‘Performance with Purpose’, PepsiCo India has initiated collaborative farming in Rajasthan for high quality Barley cultivation in the country. PepsiCo currently partners with 1200 farmers covering over 10,000 acres of area for barley cultivation.

The United Breweries group, country’s leading spirits company with a major focus on the brewery (beer) and alcoholic beverage industry, has tied up with PepsiCo India to source high quality barley for their beer brand, thus ensuring a ready market to the farmers for their produce.

PepsiCo covers Sriganganagar and Hanumannagar under its Barley initiative in Rajasthan. As part of the program, PepsiCo India provides high quality seeds, technical know-how, packaging practices assistance to the farmers, positively impacting their yield and income. Two new high yield varieties of Malt Barley seeds have also been introduced by PepsiCo.

Speaking on the initiative, Amit Bose, Executive Vice-President Export, PepsiCo India said, “PepsiCo India has a legacy in supporting agriculture. Over the years, it has been working in close partnership with the farming community with a vision of creating a cost-effective, localized agro-base in India by leveraging its access to world class agricultural practices. Our successful partnerships in Punjab, Karnataka and West Bengal have given us the confidence to extend it to other parts of the country including Rajasthan. In addition, Barley, being less water intensive than other alternate crops like wheat and is best suited to regions such as Rajasthan.”

Unlike other winter crops, barley needs less water and is more tolerant of salinity and alkaline conditions than other crops. It is, therefore, of great significance in areas where it is not possible to grow a successful wheat crop owing to unsuitable soil and insufficient irrigation.

Elaborating on the positive impact on the farmers, he further added, “There has been a significant increase in farmers’ yield and income. A farmer who used to earn maximum Rs. 4/kg a few years back is now able to sell his produce for around Rs. 9 – 10 per kg. The yield has also increased due to the supply of high quality seeds and providing the farmers with technical know-how.”

“Our income has significantly increased due to the inputs and varieties provided by PepsiCo. PepsiCo has not only been helpful in increasing knowledge about the crop but has also helped secure our future,” said Vijay Saharan, Village Laduwala, Sriganganagar a happy PepsiCo farmer at Ganganagar.

Malt grade barley has wider applications in the field of food, beverages, breweries and pharmaceuticals. In 2006-07 India produced approximately 1220 thousand metric tones of barley*, most of which is used for cattle feed.

Through this initiative, PepsiCo India aims to not only start a journey towards improving the quality of barley cultivated in India but also transform India as the major producer and exporter of Barley.

Performance with Purpose (PwP)

Performance with Purpose articulates PepsiCo India’s belief that its businesses are intrinsically connected to the communities and world that surrounds it. Performance with Purpose means delivering superior financial performance at the same time as we improve the world.

To deliver on this commitment, PepsiCo India will build on the incredibly strong foundation of achievement and scale up its initiatives while focusing on the following 4 critical areas that have a business link and where we believe that we can have the most impact.

- Replenishing Water and continue to expand its expertise in water conservation

- Partnering with Farmers to help them earn more

- Converting Waste to Wealth, to make our cities cleaner and healthier, and

- Improving the Health and Wellbeing of our children

For more information, please visit www.tomorrowbetterthantoday.com

Collaborative farming leads to increase in productivity, yield & the income for PepsiCo farmers.

For further information, please contact:

Genesis Burson-Marsteller

Kaveri Sengupta

Mob: +91-9811616685

e-mail: kaveri.sengupta@bm.com