Pepsi to fizz up image with corporate social responsibility

PepsiCo on Wednesday discussed plans to widen its product portfolio in India and build the brand's image around corporate social responsibility at the $43-billion beverages and snacks foods multinational's first global board meeting in India, an official familiar with the matter said. The three-day global board meet is being attended by PepsiCo chairman and CEO Indra Nooyi, International CEO Michael D White and 11 independent directors including Novartis AG chairman & CEO Daniel Vasella and Colgate-Palmolive president & CEO Ian M Cook. The board of directors also discussed increasing the beverages maker's presence actively in the country's health and wellness portfolio, especially in the packaged water category, said the official requesting anonymity. The meeting is seen as an indication of the importance of India in PepsiCo's global space, officials said. The only other time the company board met outside was five years ago, in Mexico.

The meet in India is believed to be the brainchild of Ms Nooyi. "We want to show them (PepsiCo board members) the glory of India and the issues in India so that we propose solutions," PepsiCo's India-born chairman and CEO had said at a meeting organised by the United States-India Business Council (USIBC) and CII on Tuesday. India has been identified as one of the top three markets for PepsiCo, which came into the country almost 20 years ago, she had said. The board will use the Mumbai meet to learn more about the Indian market place, the firm's business strategies here and the progress it's making in environmental, human and talent sustainability, the company said in an official statement. "They also will take an in-depth look at how our business and product lines are evolving to address the varied and changing needs of Indian consumers," the PepsiCo India release said.

PepsiCo allocated 'region' status to the Indian operations in 2008, which meant more room for decision-making and higher resource allocation. In January this year, it integrated beverages and snacks businesses in the country under a common leadership, in line with Ms Nooyi's 'power of one' strategy followed in many world markets. The company has already announced investments of Rs 1,000 crore ($220 million) in its beverages business this calendar to step up manufacturing capacity, market infrastructure, supply chain, product innovations and research & development. The investment, PepsiCo India's biggest in a single year in the beverages arm, is part of the company's $500-million investment allocated for India over three years. Pepsi has invested $1 billion in India so far. It has 41 bottling plants in the country, of which its franchisee bottling partner Jaipuria Group owns 28. The Indian subsidiary recorded an all-time high volume growth of 33-35% last year at a time when its parent was grappling with falling sales.