How India Became Pepsi's Right Choice
STILL FIZZING > How India became Pepsi’s right choice half the turnover. A new clause said soft Twenty-five years ago, PepsiCo sowed its India entry through an agrarian route, drink concentrate could not rise beyond THE PEPSI CEOs 25 per cent per cent of the venture’s despite opposition from several powerful people, and became a brand to be reckoned turnover and it would also not be able to import ingredients. RAMESH VANGAL with. Surajeet Das Gupta looks at the strategies and the people who made it possible PepsiCo started rolling out its colas CEO-Beverages, PepsiCo India in June 1990. Within two to three years, (1989-1993) epsiCo thought it had a winner in Pepsi would be a good name. Vangal had places cold. Indians now have a per it sold over 20 million cases a year, Present : Chairman of Katra Group “Pepsi Era”. A bizarre rule in the fought for three years to secure permis- capita consumption of 22 bottles of soft though a much small brand compared P 1980s allowed multinationals to sion to launch his company’s drinks. He drinks each year, up from three in 1989. with Parle. In 1991, India faced a bal- Joined PepsiCo in 1985 and was given the task of use only hybrid brand names for their gave in when the minister said he could PepsiCo is trying to dislodge Coca-Cola ance of payments crisis and went in for setting up operations in India. Was confronted with products in India. For PepsiCo, Pepsi hold back the clearance. in drinks, though the gap is still large, economic restructuring, as suggested virulent opposition from cola king Ramesh Chauhan, Era seemed apt for creating history in A couple of years ago — in but is streets ahead of the competition by the International Monetary Fund.
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