20-11-2012, 03:16 PM
PEPSI’S ENTRY INTO INDIA
pepsisentryintoindia-091219234036-phpapp01.ppt (Size: 1.28 MB / Downloads: 36)
Why Companies needs to be Globalize?
To Broaden the markets
To seek raw materials
To seek the technologies
To seek the production efficiencies
To avoid political hurdles
To diversify
To postpone the payment of domestic taxes
To counter foreign investments by competitors
Hurdles faced by PepsiCo during 1980’s
In 1988, the threatening letter by George Fernandes.
There should be no import of cola concentrate
There should be no use of foreign brand name.
Lack of liberalization
100% FDI was not allowed
Agricultural sector was the priority
Strategy Adopted By Pepsi
Promoting and developing the export of Indian Agro-based products, though it got rejected.
Each cola import would be in return of exporting juice concentrate from Punjab.
Development and Welfare of State.
Bringing about Agriculture Revolution in state.
Creating Employments.
Terrorists to return to society.
Punjab boasted a healthy agricultural sector
After Liberalization
In 1994, it bought off its partner in venture i.e. Voltas and PAIC.
Establishing wholly owned subsidiary PepsiCo Holding India Pvt. Ltd.
Changed name from “Lehar Pepsi” to “Pepsi”
Sold off its Tomato Paste Plant in 1995
Gradually reduce the contract farming
Plastic Exports were 67%.
Till 1997, the agro research centre was no where.