Over the next five years: PepsiCo to invest $1b in Pakistan

Announcement comes as govt struggles to boost investment

LAHORE: PepsiCo has announced that it intends to invest $1 billion in Pakistani market over the course of the next five years.

The news was shared by PepsiCo Chief Executive Officer for Asia, Middle East and North Africa (AMENA) region Mike Spanos in a meeting with Prime Minister Imran Khan.

The disclosure comes at a time when the incumbent government is struggling to secure bailout packages, aids and foreign direct investments for Pakistan.

Cumulatively, the company has invested $800 million in the past five years primarily on expanding its infrastructural base and diversifying products. Its arch-rival Coca-Cola has already invested $500 million for an expansion drive for bottling plants, which are currently six in number.

Coca-Cola has further announced investments amounting to $200 million for the Pakistani market.

PepsiCo is investing hefty amounts in the agriculture sector to become autonomous in securing a raw material line to feed its food business.

According to a company official, around $25 million worth of business cycle is being generated annually, while dealing with the farming community in Pakistan.

Spanos also invited the prime minister to inaugurate PepsiCo’s new snacks manufacturing facility based in Multan next year. The second largest state-of-the-art facility represents an investment of $44 million, which aims to generate around 1,500 employment opportunities directly and indirectly.

The system altogether created 60,000 jobs through company-owned snacks business and 16 franchised bottling partners and distributors. The company official termed the new investments ‘need-of-the-hour’ as novel trends have emerged in the recent past. The company is also exporting snacks to Afghanistan and Malaysian markets and is looking to further enhance its export volume in future.

Published in The Express Tribune, November 29^th, 2018.

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