Indian snacks arm boosts PepsiCo sales

Rapid growth in its snacks business in India has resulted in 13 per cent jump in overseas snacks volume for cola major PepsiCo.

The company said its snacks division posted its highest-ever volume increase in a year on the back of a strong demand for lentil-flavoured chips in India and crab-flavoured chips in Russia and Gamesa chips in Mexico.

Frito Lay India, PepsiCo's snack and foods subsidiary, has been growing after its began to localise its products. The launch of Kurkure, a locally developed savoury brand, is said to have boosted sales volumes significantly in the country.

PepsiCo is reported to be in the process of launching Kurkure in the United States.

PepsiCo's first quarter net income increased to $1.1 billion from $947 million last year. The company attributed the 16 per cent rise in profit to the increase in sales of lower-fat Frito Lay snacks and demand for soda in China and Brazil.

In 2005, Frito Lay India was merged with PepsiCo. The Indian division of the snacks subsidiary is among the fastest"�growing unit for the company due to a well-developed distribution network. Localisation of offerings has been another major factor responsible for the success of the division in India.

In the Lays chips portfolio as well, the company has tweaked flavours in the past year to make them more suitable to the Indian palate.