With increasing competition and the company?s efforts to promote its products as healthy snacks, PepsiCo India is busy carving a niche for itself in the ?nutrition? snack segment. The company, which is extremely ambitious on its growth plans is targeting the kids segment to promote its healthier options, such as its – yet to be launched – variant in ?Cheetos?, which would have vegetable content packed with whole wheat flour.
The company hopes to capitalise on the ?nutrition? agenda, which it hopes would go very well with parents too. ?This is a part of our-good for you offerings, which the company plans to increase in its portfolio over time as a part of our global strategy?, Gautham Mukkavilli, managing director, Frito Lays India division told FE. The company, which is expanding its capacity by one-third by the next year was the first to switch over to Rice Bran oil (RBO), substituting it for the Palm Oil. The oil has 47% of its fats mono-unsaturated and only 20% of the fats in the oil are saturated. ?In line with this strategy, we embarked on reducing the saturated fat in our products by almost 40% and we hope to further bring it down substantially in future?, he added.
Refusing to divulge any figures on investment for capacity expansion, Mukkavilli said that the company was growing at a very strong rate and aimed at growing at a double digit growth this fiscal.
Given the young demographics of the country, PepsiCo is in drive of garnering a large share in the kids segment, especially with such offerings, since parents too would be comfortable with healthier snacks option.
Refusing to comment on its competition, the ITC?s Bingo that was launched last year, Mukkavilli said that we are growing at a very steady rate and our output is increasing at a very satisfactory pace. According to analysts and media reports the company is believed to have lost a chunk of its market share to its rival, but Mukkavilli hinted that health products was the mantra for the company and going on that trajectory, Frito Lays was creating a niche segment in the snacks market, which it expects to grow at a steady double digit rate.
PepsiCo, which started its research and development (R&D) centre in India, is also understood to be developing new fruit flavoured drinks for the Indian market. The company?s portfolio constitutes; ?fun for you products? to ?better for you? and the ?better for you? into the ?good for you?.
