PepsiCo’s $1bn investment in Pakistan’s snacks sector endorses country’s evolution
According to Mordor Intelligence, the Pakistan savory snack market recorded a revenue of $512.03m in 2017 and is expected to grow at a CAGR of 9.34% to reach $874.53m by 2023.
PM Khan's 100 Day Plan
Among targets achieved to-date:
- Strengthened the FIA to curb money laundering
- Signed agreements with 26 countries to share information and recover assets
- Created a task force to improve the situation of government hospitals
- Recovered Rs350bn ($2.5bn) worth of land as part of the anti-encroachment drive
- Lodged Federal Inland Revenue Service notification against companies involved in power theft
- Allotted land to build shelters for poor people in Rawalpindi and Lahore
Among future plans:
- Provide nourishment for four million children to reduce stunted growth
- Expand the Benazir Income Support Program
- Provide chickens and eggs to women in rural areas to start their own poultry businesses
- Equip farmers with modern technology
- Reinvigorate Pakistan’s fisheries exports
- Eliminate the water crisis
Minister for Information Fawad Chaudhry has welcomed PepsiCo’s decision.
He said Prime Minister Imran Khan’s vision, policies and reforms agenda is sure to attract more foreign investments, but ventures by global companies, like PepsiCo and British Airways, is proof of the growing trust of the world in Pakistan.
According to Minister Chaudhry, Pakistan is a great destination for breathtaking valleys and colorful cultures.
Benefiting local farms
Under PepsiCo’s investment, a potato snacks unit will be installed in Multan, which will benefit the farmers in the region.
The 80,000m2 facility represents an investment of $66m and is expected to create more than 1,500 direct and indirect employment opportunities.
Pilot said PepsiCo wants the PM to inaugurate it.
In November 2018, Mike Spanos, CEO of PepsiCo AMENA (Asia, Middle East and North Africa), led a delegation of senior executives – including Aamer Sheikh, CFO of PepsiCo AMENA and Furqan Ahmed Syed, VP and GM of PepsiCo Pakistan – which met with the PM to discuss the intention to invest a further $1bn in the country over the next five years.
PepsiCo’s 50-year history with Pakistan
PepsiCo has been part of the business community in Pakistan for more than 50 years.
The PepsiCo system – including company-owned snacks business and franchized bottling partners and distributors – has invested more than $800m in the past five years, providing a livelihood for more than 60,000 direct and indirect workers.
The Lay’s and Kurkure maker works with 160 Pakistani growers to purchase only locally-grown potatoes and corn, which supports an estimated 4,000 jobs and provides farmers with critical training on sustainable farming practices.
The PepsiCo Foundation is also granting a $1m fund to two new programs under PM Khan’s 100 Day Plan to further sustainable development.
The grant will make safe drinking water accessible to thousands of people through the rehabilitation and installation of reverse osmosis plants, as well as launching a youth skills development and leadership program that will equip the next generation to be workforce-ready.
