PepsiCo to continue investing in India: Indra Nooyi
19 Dec 2006
Seventeen
years after it came to India, Pepsico is yet to recover
its investment. While it is making cash profits, operating
profits are still some distance away says Indra Nooyi
in her first visit to India after taking over as president
and CEO of Pepsico, reports CNBC-TV18.
While
hard-selling India to Japanese investors, prime minister
Manmohan Singh had quoted a Japanese study that said
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 that has invested
$700 million in India, half a billion of which is its
own money.
Therefore, Indra Nooyi, president and CEO, PepsiCo, says, "Superior profits, it is not our experience yet. India will remain an investment market for some time."
As chief financial officer from 2001, and joint author of PepsiCo corporate strategy along with former CEO Steve Reinemund, Nooyi 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.
So
India would remain an investment market for some time
to come.
And while India was a key market, China was leading
the region both in size of sales revenue and growth.