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PEPSICO Recent trends, Development & New Partnership Models in Processed Food, September 14, 2011. Rajiv Wakhle Director Operations. PepsiCo- Global Fact Sheet. Second Largest Food And Beverage Company Annualized Revenues Of Nearly $ 60 Bn

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  1. PEPSICO Recent trends, Development & New Partnership Models in Processed Food, September 14, 2011 Rajiv Wakhle Director Operations

  2. PepsiCo- Global Fact Sheet • Second Largest Food And Beverage Company • Annualized Revenues Of Nearly $ 60 Bn • Largest Portfolio Of Billion Dollar Food And Beverage Brands- 19 • Employs 285,000 People Worldwide

  3. PepsiCo in India • Largest Food and Beverage Business in India • Third Largest FMCG Business • We provide direct/indirect employment to over 150,000 people • Pioneering work done in Agriculture and work with over 22,000 farmers • We are nourishing and delighting India for 20 years

  4. Performance with Purpose Promise of PepsiCo Human Sustainability: To encourage people to live healthier by offering a choice of both enjoyable and wholesome foods and beverages. Environmental Sustainability: To be good citizen of the world, protecting Earth’s natural resources by innovation and more efficient use of land ,energy, water and packaging in our operations Talent Sustainability: To invest in our associates to help them succeed and develop the skills needed to drive company’s growth, while creating employment opportunities in the communities we serve.

  5. Promise of PepsiCo 60% Farmers Small & Marginal 90% Farmers Retention Assured Farm Income Environment Sustainability Human Sustainability Drip Farmers Upliftment DSR

  6. Market linked self sustaining Farming Model Agri Companies Quality based fixed buyback ‘Pay for Performance’ systems to drive quality and continuous supply Program support Insurance Govt Banks Farmer PepsiCo Locally evolved Farmer’s Organization Directly with the Farmer Seed Companies Input Companies Provide technical support and extension services for chip grade farm practices. Advantaged Seed Storage Services “Partners in Progress” Model

  7. Partnership in Multi Crops, Strong Relations • Rice • Integrate 7,500 farmers • Tech. Support 12000 acres • Network in 4 states • Potato • Integrate 14000 farmers • Collaborative Farming on 13000 acres • Network in 9 states • Oats • Integrate 500 farmers • Expanding in North India • Scale up Potential to 50000 Acres

  8. Strong Partner Relationships • Banks - National Level Tie up with --SBI – Priority Banking • Crop Weather Insurance – ICICI Lombard • Agri – Input Companies • Bayer • DU-Pont • Government Bodies • Institutes - CPRI, IGFRI, IARI, IRRI • Agri Universities – PAU,RU

  9. Global Companies Cold Store Technology Traditional Cold Stores –Bag Stores Leading to Quality Deterioration and Mounting Losses Modern Cold Stores- Bulk Stores Maintain Optimum Storage Condition Long Storage – Reduce Losses Omnivent ,Holland ETA ,Dubai

  10. World Class Mini-Tuber Seed Facility

  11. Automation in Agri-Ops to Min. Losses Interventions Simple power tiller can significantly improve the quality of ridges and soil cover Earthling up using spades doesn’t provide adequate soil cover Simple Mechanical harvesters can improve efficiency and reduce damages. Traditional form of harvesting results in higher damage to potato & low efficiency

  12. Traditional Paddy Operation, Labor intensive Traditional Puddling Paddy Nursery Raising Farmers Field Inspection Traditional Transplanting

  13. Direct Seeding Demonstration Farmers Camp-Barnala Farmers Camp Jalandhar DSR Crop at 65 Days DSR Crop at Panicle Stage

  14. Direct Seeding Irrigation Efficiency PepsiCo has perfected the technology through field trials over 5 years. • Water saving of about 1 million liters / acre • Farmer saves about Rs. 1500 / acre • Methane emission reduction of 75% Direct Seeding Demonstration 40 Days Crop Direct Seeding Machine Direct Seeding Acres 70 Days crop 120 Days Crop

  15. New Crop OATS in Rajasthan, UP & MP Oats Crop at Rajasthan Oats Crop at UP Oats planted at MP Oats Crop at Harvesting Stage

  16. Efforts in Drip Irrigation of Potato • Initiated drip irrigation in water deficient Satara in MH • Productivity and Quality incentives to increase income • Drip Irrigation incentive to cover costs in three years • Converted 2100+ acres benefitting 2000 farmer families • Helped farmers save more than 2.1 Billion Liters of water • Productivity Benefits : • Increase in Productivity by 31% (7.2 MT per acre Vs 5.5 MT average; highest 10.5 MT) • Improved Potato Quality (More solids, Less Defects)

  17. Rich Harvests Happy Partners

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