International brands are coming to India in search of safer markets and cash-rich customers. This is due to a bleak outlook in developed markets where purchasing power has been severely eroded and consumer confidence is low.
The most prominent has been in the airlines industry and in consumer goods.
In airlines industry, several global players such as British Airways, Virgin Atlantic, Singapore Airlines and Emirates have approached the Indian Airline Company, Kingfisher Airlines, to pick up a stake.
PepsiCo on Sunday is going ahead with its planned $500 million investment in India over the next three years. The CEO of PepsiCo India Holdings has said that the global slowdown has mostly affected consumer durables and the financial and banking sectors while there has been no slowdown in FMCG (fast moving consumer goods). This statement was made in September at the India Economic Summit organized by the World Economic Forum and the Confederation of Indian Industry (CII).
The investment would go towards manufacturing capacity expansions, agriculture, research and development, marketing infrastructure and ensuring environmental sustainability.
Pepsico has so far invested $700 million in India since its inception in 1989, and provides employment to 150,000 people directly and indirectly. It has 43 bottling plants in the country out of which it owns 15 and the rest are franchises. The new investment will add another 50,000 direct and indirect jobs.
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