PepsiCo CEO Ramon Laguarta emphasized during Thursday’s analyst call that India remains a high-demand market with significant growth potential for years to come. He underscored the company’s ongoing investments in infrastructure to capitalize on what he described as a substantial opportunity in the region. Laguarta highlighted India as a key focus area for strategic expansion, noting the company’s commitment to scaling up operations and strengthening its brand presence to meet growing consumer demand.
PepsiCo India reported robust organic revenue growth in the second quarter of calendar year 2024, reflecting high single-digit expansion. The company’s management highlighted the positive performance in developing and emerging markets such as Egypt and Poland, each achieving double-digit organic revenue growth. India, along with Brazil, contributed to PepsiCo’s high-single-digit growth in these markets, underscoring its strategic importance.
In the AMESA region (Africa, Middle East, and South Asia), PepsiCo noted varied performance across its product categories. The convenient foods unit saw a 1% volume increase in the second quarter, driven by strong double-digit growth in India and modest growth in South Africa. However, this was offset by declines in West Asia and Pakistan. Over the 24 weeks leading up to mid-June, the unit’s volume grew by 2%, driven by similar growth patterns in India and South Africa, counterbalanced by declines in West Asia.
Similarly, PepsiCo’s beverage unit experienced a 2% volume growth in the second quarter, primarily propelled by double-digit growth in India. This growth was partly offset by declines in Pakistan, West Asia, and Nigeria. Over the year-to-date period, PepsiCo highlighted its success in maintaining or increasing market share in the savory snacks category in various countries including China, India, Brazil, Australia, and Pakistan. For beverages, the company reported sustained or improved market share in Australia, South Korea, China, Thailand, Pakistan, Egypt, Vietnam, Saudi Arabia, the UK, and Brazil.
Overall, PepsiCo continues to view India as a pivotal market for future growth, investing significantly to leverage the country’s expanding consumer base and favorable economic prospects.
