PepsiCo India registers a profit of 883 crore rupees in the fiscal year 24 following the switch to a new accounting period.
PepsiCo India Reports Significant Growth in First Full Year Under Jan-Dec Cycle
Food and beverage giant PepsiCo India posted a consolidated net profit of Rs 883.39 crore and revenue of Rs 9,096.62 crore for the calendar year 2024 (CY24), marking its first full year under the new January-December reporting cycle.
The company, which transitioned from the April-March financial year in 2023, reported a significantly higher revenue compared to the nine months of that year, which amounted to Rs 5,954.16 crore in consolidated revenue and a net profit of Rs 217.26 crore. Coca-Cola India, a key competitor with an April-March accounting year, has yet to release its annual figures for FY25.
For CY24, the food business accounted for 75% of PepsiCo India's total revenue, generating Rs 6,889.66 crore. Brands such as Kurkure, Lay's, Doritos, and Quaker contributed to this segment. The beverage segment, which includes popular brands like Pepsi, 7UP, Slice, Tropicana, and Gatorade, accounted for Rs 2,206.96 crore of the overall revenue.
In a statement, Jagrut Kotecha, the CEO of PepsiCo India and South Asia, praised dynamic marketing, outstanding market execution, and consumer-centric innovation for driving the company's performance in 2024. Unlike Coca-Cola India, which has a hybrid ownership model for its bottling operations, PepsiCo India outsources all its bottling activities to partner Varun Beverages, one of its key bottlers outside the US.
Varun Beverages, a key ally for PepsiCo India, reported consolidated revenue of Rs 20,481.32 crore and a net profit of Rs 3,433 crore for CY24. PepsiCo India itself is not publicly listed.
As India's growth potential continues to attract global interest, PepsiCo's global management has highlighted the country as a key growth area and increased its investments. In 2024, the company announced an investment of Rs 1,266 crore to establish a flavour manufacturing facility in Ujjain, Madhya Pradesh, scheduled to begin operations in the first quarter of 2026. In addition, a new plant in Tamil Nadu is also planned.
PepsiCo's commitment to sustainability, innovation in packaging, and expanding its product portfolio to align with evolving environmental and health trends is a driving force behind these investment decisions. The company aims to have 100% of its packaging to be recyclable, compostable, biodegradable, or reusable by 2025, while also striving to cut virgin plastic use per serving by 50% and reducing absolute tonnage of virgin plastic by 20% across its beverage and convenient foods portfolio. These efforts demonstrate PepsiCo's focus on mitigating environmental impact and strengthening its commitment to sustainable sourcing.
- The significant growth achieved by PepsiCo India in the first full year under the new January-December reporting cycle (CY24) could potentially attract investors in the finance and investment sectors, given the promising returns from the business.
- As PepsiCo India plans to establish a flavour manufacturing facility in Ujjain, Madhya Pradesh, using an investment of Rs 1,266 crore (2026), one might anticipate a rise in the technology sector's demands to support the production process.
- Dynamic marketing and consumer-centric innovation, as highlighted by PepsiCo India's CEO, Jagrut Kotecha, are strategies that could lead to a possible increase in market share while appealing to a wider demographic around the world, including in the rapidly growing Decentralized Finance (DeFi) market.
- As PepsiCo India expands its product portfolio to align with evolving environmental and health trends, its focus on sustainability might result in dividends for shareholders who prioritize socially responsible investments, as well as attracting recognition from various corporate accountability organizations.
