PepsiCo India's third food manufacturing plant gets nod to re-start work

Capacity utilisation at the two units is not more than 25%, but will increase as more people make their way back to work, according to industry sources

PepsiCo India’s third food manufacturing plant, located in Kolkata, has received approval from district authorities to resume production this week. This is the third plant, following Punjab (at Channo) and Pune, to be given the green signal.
 

The move marks a slow but steady process of plants re-openings that have begun in the food and fast-moving consumer goods (FMCG) sectors since April 20, following the Centre’s decision to ease lockdown rules in rural and green zones.
 

Last week, Nestlé India had said it had received permission to operate all manufacturing units in the country.
 

PepsiCo’s Kolkata plant will begin with a small batch of workers, said people in the know, and is expected to slowly ramp up as it receives necessary approvals for the same. Executives at PepsiCo India were not immediately available for comment.
 

The Channo, Pune, and Kolkata plants manufacture brands such as Lays, Kurkure, and Doritos. It also works with co-packers, but the number could not be ascertained immediately.

The snacks market, like that of fizzy drinks, has been hit hard due to the absence of out-of-home consumption.
 

While PepsiCo continues to manufacture food products (such as western and Indian snacks, oats, etc), bottling operations on the beverages side have been completely outsourced to Varun Beverages, which is part of the Ravi Jaipuria group.
 

The multinational is the second-largest snacks maker in India after Haldiram’s, but leads in the southern market, according to industry experts. It also has a dominant position in segments such as potato chips versus Haldiram’s, which is a leader in traditional snacks.
 

The Channo and Pune plants are each operating with 30-35 per cent workforce at present, said people in the know, implying that not more than 1,000 people are permitted entry into the units. Workers in both plants operate in one shift each, of eight hours.

Capacity utilisation at the two units is not more than 25 per cent currently, but will increase as more people make their way back to work, according to industry sources.
 

Companies such as Parle Products, for instance, have managed to open about 70 per cent of their total plants in the last two weeks, said the firm’s senior category head Mayank Shah. Of the 135 units making Parle’s brand of products, 10 are company-owned and 125 belong to co-packers.
 

Nestlé India, on the other hand, said it was closely monitoring the situation and would take necessary measures based on government directives.