Frito-Lay India shares plans for North India

Company press release, APril 4, 2003

Lucknow

Frito-Lay India, manufacturers of leading snack brands, shared their plans for North India today. At a press conference in the city, Sanjay Warke - Director (Sales), Frito-Lay India disclosed that Uttar Pradesh will be the focus of its expansion strategy.

"We thank our consumers for receiving all our products so well and making the northern region our biggest market. In fact, UP accounted for 8% of Lays sales in 2002. As a marked gesture of our appreciation, we have decided to keep the North Indian consumer at the center of our plans for Frito-Lay India," said Sanjay Warke. "Our plan is to catapult Lay's to a mega snack brand status amongst the youth in UP and we intend to capture 10% market share of the branded salties market in UP."

Frito-Lay India is looking at strengthening its hold in North India by improving distribution and ensuring consistent quality. It will continue to invest in North Indian media to increase brand awareness and equity.

Explaining the strategy for UP, he elaborated, "UP is a market with tremendous potential for growth. While other snack categories are decommoditised to a great extent, salty market is predominantly unbranded. The urban UP consumer is value-conscious and will upgrade to better quality branded products when given a choice."

In a bid to further cement the connect with youth, Lay's has appointed spunky Bollywood star Saif Ali Khan and the hottest cricketing sensation from Uttar Pradesh, Mohammed Kaif as their brand ambassadors.

Kaif was also present at the conference. Kaif was in Lucknow to declare the winners of the Lay's-Radio City contest being run in the city between March 31st and April 2, 2003. The winners got the opportunity to meet Kaif in person and to have lunch with him.

"I have always liked Lay's potato chips and am happy to be associated with Lay's as their brand ambassador. I look forward to interacting with their consumers on different occasions, one of them being today with the contest winners," said Kaif, in his inimitable coy demeanour.

About Lay's

Lay's Potato Chips are the flagship brand of Frito-Lay India. Introduced 10 years ago as Ruffles Lay's, the brand has had consistent growth thereafter. Last year it has grown by 48%. The potato chips category comprises 76% unbranded players and 24% branded players. Between Lay's and Uncle Chipps, 88% of the all India market share is with Frito Lay.

Lay's potato chips are available in five variants - Classic Salted, Magic Masala, American Style Cream and Onion, Spanish Tomato Tango and the latest launch - Saif & Kaif Hot & Sweet Chilli Carribean Style.

About Frito-Lay India

Frito-Lay India is the manufacturer of leading snack brands such as Lay's Potato Chips, Lehar Namkeen, Nutyumz, Kurkure and Cheetos fun snacks in India. Its parent company, the $ 14 billion Frito-Lay International is the world's largest snack food company and is part of the $27 billion PepsiCo Group of Companies.

Frito-Lay India is the largest player in the Indian salty snack market with a market share (value) of above 40%.

Lay's potato chips are available in five variants - Classic Salted, Magic Masala, American Style Cream and Onion, Spanish Tomato Tango and Saif & Kaif Hot & Sweet Chilli Carribean Style. Cheetos, the extruded snack food brand from Frito-Lay, has three variants - Tomato Wheels, Masala Balls and Cheese Puffs. Lehar Namkeen has a wide variety of winning products including Aloo Bhujiya. Kurkure has expanded its range with launch of Kurkure Twisteez and Kurkure Red Chilli Chatka to add to Kurkure Masala Munch. Nutyumz , a premium crunchy coated peanuts product, was also launched recently.

For more information:

Ruchira Raj Parul Sharma

Frito-Lay India Genesis PR, New Delhi

Tel: 95124-2803200 Tel: 91 11 26878790/91/92

Fax: 95124-2803165 Fax: 11 91 26881733

Email: ruchira.raj@intl.fritolay.com E-mail: psharmas@genesispr.com