Quick commerce, which allows easy product discovery and enables delivery within minutes, has changed the competitive landscape
With direct-to-consumer companies giving tough competition to the established players and regional players flooding the local market, PepsiCo is doubling down in its efforts to capitalise India’s growth potential by enhancing its focus in the country’s snacks market.
PepsiCo has flown several executives of its snacks business from across the world to India, led by the Chairman of the company, Ramon Laguarta, as per the media reports. The reports state that such a large contingent of snacks business of the company has visited the country for the first time.
One of the core reasons for the shift in the competitive dynamics is the rise of quick commerce, which allows easy product discovery and enables delivery within minutes. The reports state that Haldiram, a local rival of PepsiCo, is likely to focus on expansion after raising USD one billion from private equity (PE) investors.
Led by India, Brazil, Egypt and Turkey, the company’s international convenience foods business registered a growth of two per cent in January to March. The reports added that Laguarta stated that India is in a good place.
The reports highlighted that PepsiCo’s headquarters has identified India as one of its 13 anchor markets. The company’s primary focus in India is now on the snacks business, as it has outsourced the majority of its beverage business in the country to Varun Beverages. The company has four local manufacturing plants in Punjab, West Bengal, Maharashtra and Uttar Pradesh, as per the media reports.
With the competition in the country’s snacks market rising rapidly, major players like Haldiram, Bikanerwala, ITC and Parle are competing to gain major share of the market.
