Pepsi's Indian operations *

Abstract:

The caselet takes a look at the pre- and post-liberalization period and the entry and establishment of PepsiCo. in India. It discusses the proposals made by PepsiCo. to the Indian government with regard to its entry into the Indian market and the extent to which the company has adhered to these proposals. It also takes note of the critical view of the company in the eyes of the public and the Government of India.

Issues: » Was it smooth sailing for Pepsi in India? » Did Pepsi stick to the promises it made to the Government of India? » Pepsi's Indian operations. » Critical view of the company in the eyes of the public. » Was Pepsi's entry into India a boon for the Indian agriculture sector? Introduction Coca-Cola, the world's number one cola company, was forced to close its operations and leave India in 1977 after the Janata Party came to power. In the late 1970s and even in the late 1980s, India had a closed economy and government intervention in the corporate sector was quite high. The Janata Party government (1977-79) legislated that foreign enterprises operating in....

Questions for Discussion:

1. Why do companies like Pepsi need to globalize? What hurdles and problems did Pepsi face when it tried to enter India during the 1980s?
2. Critically analyze the strategy adopted by Pepsi to sell itself to the Indian government. Do you think the biggest factor responsible for the acceptance of its proposal by the regulatory authorities was its projection of its operations as the solution to many of Punjab's problems? Why/Why not?

Key words:
Janata Party, Coca-Cola, PepsiCo, urbanization, Global brands, Development and welfare of Punjab, Contract farming, Foreign exchange reserve (Forex) crisis, Liberalization, Indian economy, Agro-related investment.

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