Pepsi plans $150 million flavor manufacturing facility in Ujjain

Drinks and snacks firm PepsiCo has announced an investment of ₹1,266 crore ($150 million) to set up flavor manufacturing facility in Ujjain, Madhya Pradesh.

The maker of Pepsi, Lay’s brand of chips, Quaker oats, and the Kurkure range of spiced crunchy puff corn snacks, said the new plant will help scale up its beverage production in the country and generate jobs.

The firm, which also produces Aquafina bottled water, Mountain Dew and the Tropicana range of fruit juices, announced the new plant in the same week that India’s weather department forecasted a longer spell of heat waves this summer.

PepsiCo’s new facility in Ujjain, which will manufacture beverage flavor ‘In India, for India’, will be the company’s second flavor manufacturing facility in the country.

“Aligned with PepsiCo’s Winning with pep+’ (PepsiCo Positive) philosophy of driving sustainable accelerated growth, the plant will implement state-of-the-art technologies to ensure efficient water usage and replenishment, setting new industry standards for eco-conscious operations,” the company said in a statement.

Jagrut Kotecha, chief executive officer of PepsiCo India & South Asia, said, “With support from the government of Madhya Pradesh, we aim to strengthen our footprint while driving impactful progress in enhancing the socio-economic landscape of the region.”

George Kovoor, senior vice-president for beverages at PepsiCo India, said, “We are excited to announce the setting-up of our second flavor manufacturing facility in India, a significant testament to PepsiCo’s unwavering commitment to the region.”

“We aim to ramp up the production of our beverages to meet the rising demand in the country. This strategic investment not only strengthens our dedication to providing the highest quality beverages to our consumers but also reinforces our responsibility to drive sustainable practices across our operations,” Kovoor said.

The manufacturing facility will operate entirely on renewable energy sources, leading to a reduction in carbon footprint by 1.9 metric tons per day, the company said.

With zero liquid discharge technology, the plant aims to achieve 90% overall water efficiency, ensuring responsible management of water resources, replenishing 100% of the water used at the facility, it added.

PepsiCo’s other flavor manufacturing facility is located at Channo in Punjab.

The construction of the new plant is slated to start later this year and is expected to be operational in the first quarter of 2026.