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Pepsi hikes capacity by 40%; invests $100 million

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March 08, 2004 12:35 IST

PepsiCo India has invested $100 million over the last few months in hiking production capacity by 40 per cent and improving infrastructure, and expects to add up to 60 million new customers this year.

PepsiCo, along with Coca-Cola, had introduced the 200 ml pack size last year across India, and this summer, the company says this pack size will account for half of its total sales.

"We have invested $100 million over the last couple of months. We have added capacity through greenfield ventures as well as by upgrading existing lines, invested in infrastructure and other related activities," Shashi Kalathil, executive director (marketing), PepsiCo, said in New Delhi.

Kalathil said while investing in India, the company is also pursuing several cost rationalisation initiatives including enhancing supply chain efficiencies, introduction of lighter glass bottles so that transportation costs are lower and taking ERP initiatives.

"We will also spruce up the distribution network. Our aim is to take total outlets to a million this year," he said.

On the Tropicana brand of juices, he said a new 'Wedge Pack' will be launched in 200 and 500 ml pack sizes this summer in orange, apple and fruit fusion flavours even as the old tetrapaks remain.

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