The deal with Dehli-based LT Foods, known for its Daawat Basmati rice brand, will create “new avenues” for both companies, PepsiCo said.
“India foods business has been a growth driver for PepsiCo globally recording consistent high double-digit growth rates over the past few years,” said Praveen Someshwar, CEO of PepsiCo Foods India. “Our flagship snack brands, Lay’s and Kurkure are lovemarks and have now become MEGA Brands with sales of more than Rs. 1000 crore each. To build on this opportunity in a growing market, we are looking at greater support from our business partners who have been playing a critical role in our business operations.”
Someshwar said he believes an opportunity for direct and indirect employment will be created through the partnership in Haryana.
It is understood a new facility has been opened as part of the deal, under Daawat Foods, a majority-owned subsidiary of LT Foods. According to reports, the plant is located at Kamaspur, Haryana on the outskirts of Delhi.
PepsiCo would not comment further on details of the partnership agreement or on the opening of a facility.