Click to play videoNew Delhi: Seventeen years after it arrived, PepsiCo India has yet to recover its investment. It is making cash profits, but operating profits have not fizzed as yet says President and CEO of Pepsico Inc. Indra Nooyi.
Nooyi is on her first visit to India after taking over as President and CEO of Pepsico Inc in October.
While hard selling India to Japanese investors, Prime Minister Manmohan Singh quoted a Japanese study that India was more profitable to most Japanese manufacturers than other East Asian markets. But that does not seem to be the case with Pepsico India, which has invested $700 million in India, half a billion of which is its own money.
“Superior profits is not our experience yet. India will remain an investment market for some time,” Nooyi said.
As chief financial officer from 2001 and joint author of PepsiCo corporate strategy along with former CEO Steve Reinemund, Nooyi believes that she does not anticipate any major strategic change in the near future.
And while acquisitions were a second option, she said she did not see any attractive acquisition targets in India.
“In the Indian context we have looked at several deals but so far they haven’t made financial sense,” Nooyi said.
India will remain an investment market for some time to come for Pepsico. And while India was a key market, China is leading the region both in size of sales revenue and growth.
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