Is PepsiCo really serious about India?

PepsiCo Chairman, Indra Nooyi, during her visit to India in 2013 had promised $5.5-billion investment in the country by 2020. Though Nooyi in her subsequent visits has always reiterated her commitment towards India, PepsiCo's contribution towards the Indian market surely seems to be waning. Not only has the company lost considerable market share in aerated beverages, it has also been toppled from its numero uno position in the Rs 21,600 crore snacks market by regional brands such as Haldiram and Balaji.
 
Though the beverage and snack manufacturer has been making attempts to make a comeback by launching healthier beverages and snacks, the effort, according to industry, has been half-hearted. Gone are the days when PepsiCo India loved to come up with spoofs after spoofs on arch rival Coca Cola, and the cola wars were the most sought after discussion in boardrooms across the country. It's not just diminishing market share that speaks about the company's waning interest in India, but also the way it's been doing business.  In 2014, the beverage and snack maker sold its company owned bottling operations in the North and the East to its largest bottling partner, RJ Corp, and now the company is keen to also sell off its bottling and distribution operations in South and West too.
 
Earlier this year, PepsiCo gave RJ Corp's listed entity, Varun Beverages, the right to distribute its juice brand, Tropicana, and sports brand, Gatorade. Though PepsiCo has been following this asset light model in other countries too, the company's constantly dipping market shares, across all the categories it is present in India, is surely raising questions about its commitment to the Indian market. The Rs 6,540 crore beverage and snacks major has been registering a dip in revenue since the three-four years and has reported losses to the tune of Rs 300 crore.
 
The company also has been facing an acute talent crisis, especially after the exit of its former CEO D Shivkumar. "We have CVs of a number of mid-level and senior managers of PepsiCo with us, who are desperately looking for greener pastures," says the CEO of a leading talent company. The fizz is surely out of PepsiCo India, which makes one wonder whether Nooyi's promised $5.5-billion commitment to the Indian market will actually see the light of the day.