Beverages and food major PepsiCo India expects rural market to play a key role in its bid to double the size of its salty snacks business by 2022, according to senior company official.
As part of its plans to grow the business, the company is also introducing new 'finger snack format' of its brand Kurkure, inspired by popular Indian snacks.
"We have a vision of doubling the salty snacks business in 4 to 5 years time from where we are today and in the last 12 months we are going in the right path. We believe that we would be continuing that," PepsiCo India VP, Snacks Category, Jagrut Kotecha told PTI.
While he did not share the size of the salty snacks business in India, it has four major brands -- Lays, Kurkure, Doritos and Cheetos.
Lays is a Rs 2,000 crore brand and Kurkure over Rs 1,000 crore, he added.
"If we have to double the business, then both the brands have to double," Kotecha said.
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When asked about demand, he said while urban market continues to be big, the rural segment is clocking a faster pace of growth.
"As a market perspective, we are now seeing rural growth is coming back...Rural is now growing, percentage to percentage faster than urban like most of the FMCGs and we believe that it would also continue forward in the foreseeable future," he said.
Factors such as rise in farm produce prices, accessibility of products and infrastructure development are fuelling demand in the rural market.
"The rural consumption is going up. Disposable income and infrastructure is going up and that's a reality. Techonology is also allowing you to reach rural either into smaller price points or sachets...If all is happening then there is a reason to grow," he said.
Kotecha, however, added, "It does not mean that urban is not growing."
When asked whether rural demand would surpass that from urban, he said: "It could be but I am not seeing it happening in next 2-3 years because the disposable income in urban area is high."