PepsiCo started bidding to enter India market in 1985. Its first proposal was rejected, but after three years of tough negotiations the government approved the project of PepsiCo in October 1989.
PepsiCo originally entered the Indian market on the condition that it invest in the food processing sector. This lead to the company’s pioneering efforts in contract farming of tomatoes which produced tomato paste primarily destined for Pizza Hut.
PepsiCo creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation and Voltas India Limited.
The tomato business was later sold to Unilever. PepsiCo bought out its partners and ended the joint venture in 1994.
The company started operation by setting up plants for processing of tomatoes and chilies in Hoshiarpur district and facilities for tomato chip making and soft drink concentrate manufacture in Sangrur district of Punjab.
In 1993, the company started a 100% subsidiary, PepsiCo India Holdings, which would look after beverage bottling, soft funding to bottlers and joint venture exports. By 2002, it had 45 bottling plants where 17 were company owned and the rest, franchise-owned bolting units.
PepsiCo in India
