Global beverage major PepsiCo will continue its seaweed products business in India despite selling off its cultivation business to an ex-employee last month.
The company had last month sold off its 7.2 acre seaweed cultivation at Tamil Nadu assets to Aqaugri Processing, a firm led by former PepsiCo India executive Abhiram Seth.
The company exports 300 metric tonne of products derived from the cultivated seaweeds, including semi-refined and refined Carrageenan and it would continue to do so from the same cultivations.
"The company would continue to source the seaweed from Aquaagri for export and the company do not have any internal use for the seaweed or Carrageenan," a PepsiCo India spokesperson said.
Pepsico which had a buyback agreement with locals involved in the cultivation would honour its commitment, the official said.
"We have been in charge of the business for the last 8 years. After having proved the potential of the seaweed cultivation activity as a means of providing sustainable livelihood to the coastal community, PepsiCo decided to part with the business," the spokesperson said.
More From This Section
The 7.2 acre cultivation has 8,000 bamboo rafts and is used to cultivate Kappaphycus Alvarezii variety of seaweed.
"This seaweed is used to manufacture semi refined and refined Carrageenan, which has application in food, cosmetics and pharmaceutical industry as a texturing and gelling agent," the spokesperson said.