PepsiCo India Holdings has reported a net loss of R538 crore in FY16, compared with R177 crore in the year prior to it, according to the company’s filing with the Registrar of Companies (RoC). The company’s revenue during the period declined 18% year-on-year at R6,626 crore.
An email sent to PepsiCo India did not elicit any response till the time of going to the press. According to market research firm Nielsen India’s latest report on the beverage market in India, the top two major soft drink players, namely Coca-Cola India and PepsiCo India, contribute 80% of the volume. According to the study, over the past two years, the soft drink industry has seen a value growth of 11% CAGR and a volume growth of 5% CAGR. Thus, in total, 1.25 billion people in the country drink 5.9 billion litres of soft drinks in a year.
Also, the soft drinks category has been hit by issues related to health concerns and not so encouraging government policies. While firms have made efforts to drive growth in rural areas in recent years, they have received tepid response, as rural consumption levels still stand at two-thirds of that of consumption in urban areas, said the report.
This is also a reason why PepsiCo India plans to add five new products in the health and nutrition category by early 2017. According to several news reports, early this month, Deepika Warrier, VP – nutrition category, PepsiCo India, said the organisation is moving towards creating a healthier portfolio. “We have been working on developing products after understanding the local food palette and need for whole grains and nutrition in the Indian diet.” she said.
