PepsiCo, in its second-quarter earnings report released on Thursday, announced high-single-digit organic revenue growth for its Indian business. The company highlighted market share gains in both the snacks and beverage segments in India.According to the company’s management remarks, developing and emerging markets, including India and China, delivered high-single-digit organic revenue growth, while countries like Mexico, Turkey, Pakistan, Egypt, Poland, and Vietnam achieved double-digit organic revenue growth in the second quarter.However, in terms of volumes, the snacks segment in India experienced a mid-single-digit decline during the same period. The Africa, Middle East, and South Asia (AMESA) region, which includes India, also saw a mid-single-digit decline in the convenient foods unit volume.Despite the decline in snacks volume, PepsiCo’s India business managed to achieve low-single-digit volume growth in the beverage segment. The company reported gaining market share in both the snacks and beverage segments in India, reflecting its competitive position in the market.The challenging summer season in India, characterized by unseasonal rains and moderate temperatures, impacted the out-of-home demand for cold beverages, affecting the overall performance of beverage makers. However, PepsiCo’s market share gains indicate its ability to navigate the market dynamics and maintain a strong foothold.PepsiCo’s key bottler in India, Varun Beverages, has been actively expanding its manufacturing capacities and distribution footprint, supporting the company’s market share growth in the beverage segment.The summer season traditionally contributes significantly to the annual sales of carbonated soft drinks and juices in India. Despite the challenges, PepsiCo’s market share gains and steady revenue growth demonstrate its resilience in the Indian market and its ability to adapt to changing consumer preferences and market conditions.
