PepsiCo to expand snack and packed food range, focusing on Indian flavours

PepsiCo plans to expand its presence in the packaged food segment, aiming to cater to diverse regional tastes across India. The company is focusing on innovation and premium products to sustain its double-digit growth in the country, according to Jagrut Kotecha, CEO of PepsiCo India and South Asia.

PepsiCo plans to grow its presence in India's snack market, noting that snack consumption remains lower than in other countries. Kotecha expects rising urbanisation and increasing disposable incomes, supported by a growing economy, to drive greater demand for packaged foods.

The makers of Kurkure and Lays, have segmented India into nine clusters to better align with the taste buds of “multiple India’s”, he said, "If you say it's just one India, I think we are not doing enough justice to it.”

Kotecha told PTI, “You need to design your portfolio, keeping those consumers of India like multiple Indias. So that's on being consumer-centric and starting to work and drilling down on that. And then understanding what the trends are in terms of taste, profile, health and wellness.”

PepsiCo is investing "a significant amount" to better understand consumer preferences, recognising India's diverse culinary heritage in food, cooking, and beverages, he said.

PepsiCo currently operates manufacturing facilities in Mathura (Uttar Pradesh), Channo (Punjab), Ranjangaon (Pune), and Sankrail (West Bengal). The company is also setting up a new plant in Assam, which is expected to become operational this year.

PepsiCo’s food segment, which includes brands like Lays, Kurkure, Doritos, and Quaker, accounts for nearly 80% of its revenue. Kotecha expects this segment to grow in the coming years, as consumption in India remains low compared to other markets. In the oatmeal category, PepsiCo faces competition from domestic players like Marico and others, but it continues to lead in the base oatmeal segment.

"Health and wellness is a good trend to grow. We have been growing on Quaker double-digits. On our base oatmeal, we still lead the category. Saffola, leads the category more on the flavored variety," he said.

Kotecha said PepsiCo will continue to innovate to cater to the diverse tastes across India. He highlighted that products like Lays’ Magic Masala are not uniform nationwide but are adjusted to suit regional preferences.

"The masala profile which we have on Lays in Northern India is slightly different from the Western India, which is slightly on the sweeter side. And when you go to the southern part of India, it's very spicy," Kotecha said.

Even the cooking oil used for products like Kurkure varies by region. In the East, it has a mustard-based profile, while in the South, sesame (gingelly) oil is used to match local tastes.

“Rice is a huge substrate in the South for snacks. Besan is a substrate in Western India and Central India. How do I use it? So we can create products for Indian consumers for multiple Indias. And that's the journey we have started, and that's what we want to keep growing on,” he said.

PepsiCo collaborates with 27,000 potato farmers across India, sourcing over 400,000 tons of chip-grade potatoes from Punjab, Gujarat, West Bengal, Madhya Pradesh, and now Assam. The company also operates an agro R&D facility in Zahura, Punjab, focused on potato breeding.