PepsiCo is working with Varun Beverages

PepsiCo is working with Varun Beverages

PepsiCo has completed the franchising of its bottling operations in north and east India after expanding a partnership with Varun Beverages.

The company said it has franchised its business in parts of Uttar Pradesh, parts of Haryana, Chandigarh, Uttaranchal, Himachal Pradesh and Punjab. PepsiCo's bottling footprint now comprises two contiguous territories - north and east, completely franchised - and south and west, largely maintained as a company-owned bottling operation, the company said.

Varun Beverages is the largest PepsiCo bottler in India and the latest move will allow it to integrate its operations across India’s entire northern and eastern part, a PepsiCo India spokesperson told just-drinks today.

“India is a top market for PepsiCo globally,” the spokesperson said. “To drive long-term sustainable growth in this key market, PepsiCo is committed to continue investing and winning by strengthening both its company-owned operations and franchise partners.”

No financial details of the transaction have been disclosed.

The spokesperson added that there are no plans to franchise bottling operations in south and west India.

PepsiCo is committed to investing INR330bn (US$5.5bn) in India by 2020.

CORRECTION: This article was ammended on 21 November. It originally stated that PepsiCo had franchised operations in north and south India instead of north and east.