WELCOME

FOREIGN MNCS IN INDIA

AND
PEPSICO VS COCA-COLA
GROUP MEMBERS TOPIC

RAJKUMAR
MNCs in India , Why MNCs in India?

RAVINDER SINGH What MNCs want? ,

What has India gained? ,

Problems bought by MNCs

RAVI KUMAR
PEPSICO IN INDIA
Multinational Companies ( MNCs ) or
Transnational
Corporations ( TNCs ) are the
organizations or enterprises that
manage production or offer
services in more than one country
.
COMPANIES
MULTINATIONAL
FOREIGN MNCS IN INDIA
India has been the home to a number of
multinational companies. In fact, since the
financial liberalization in the country in 1991,
the number of multinational companies in India
has increased noticeably.

Coca Cola Company, Dell, Ford Motors , Google,(USA)

LG, Hyundai , Samsung (South Korea)
Sony, Hitachi, (Japan)
Virgin, British Petroleum ,Vodafone, HSBC, (UK)
Nokia (Finland)
Nestle (Switzerland)
 WHY MULTINATIONALS IN INDIA
There are a number of reasons why the multinational
companies are coming down to India. India has got a huge
market. It has also got one of the fastest growing
economies in the world. Besides, the policy of the
government towards FDI has also played a major role in
attracting the multinational companies in India.

• Huge market potential of the country

• FDI attractiveness
• Pool of Cheap & skilled labour
• Fastest growing economies
What multinational companies want?

ØStrong protection
ØFavorable treatment
ØLow taxes & regulations
ØRight to establish, without
burdensome red tape
ØRight to move employees in and out,
ØTo move capital in and out
ØUniform standards across countries
 What has India gained?
qWork culture for employees.
q
qCreation of job and career
opportunities
q
qTechnology
q
qCulture and Ethos.
qImprove in balance of payments.
q
qNet increase in FDI.

qGreater availability of products.

q
qR&D Outsourcing –
Pharmaceuticals, Engineering, IT,
Telecom
 PROBLEM BROUGHT BY MNCs
§Host country is likely to lose its economic
sovereignty.
§
§Host nation may lose some loss of control
over its own economy.
§
§Very less new additional manufacturing
units.
§
§Loss of culture .
 COKE IN INDIA
Coca-Cola, the corporation nourishing the global
community with the world’s largest selling soft drink
concentrates since 1886, returned to India in 1993
after a 16 year hiatus, giving a new thumbs up to
the Indian soft drink market. In the same year, the
Company took over ownership of the nation’s top
soft-drink brand and bottling network. It’s no
wonder our brands have assumed an iconic status
in the minds of the world’s consumers.
A Healthy Growth to The Indian
Economy
Ever since, Coca-Cola India has made significant
investments to build and continually consolidate
its business in the country, including new
production facilities, waste water treatment plants,
distribution systems, and marketing channels.

Coca-Cola India is among the country’s top

international investors, having invested more than
US$ 1 billion in India in the first decade, and
further pledged another US$100 million in 2003 for
its operations.
A Pure Commitment to The Indian
Economy
The Company has shaken up the
Indian carbonated drinks market
greatly, giving consumers the
pleasure of world-class drinks to fill
up their hydration, refreshment, and
nutrition needs. It has also been
instrumental in giving an exponential
growth to the country’s job listings.
Creating Enormous Job Opportunities
With virtually all the goods and services required to
produce and market Coca-Cola being made in India, the
business system of the Company directly employs
approximately 6,000 people, and indirectly creates
employment for more than 125,000 people in related
industries through its vast procurement, supply, and
distribution system.

The Indian operations comprises of 50 bottling operations,

25 owned by the Company, with another 25 being owned
by franchisees. That apart, a network of 21 contract
packers manufacture a range of products for the
Company.
 PepsiCo India
PepsiCo gained entry to India in 1988 by
creating a joint venture with the Punjab
government-owned Punjab Agro Industrial
Corporation (PAIC) and Voltas India Limited.
This joint venture marketed and sold Lehar
Pepsi until 1991, when the use of foreign brands
was allowed; PepsiCo bought out its partners
and ended the joint venture in 1994.
 PepsiCo
Incorporated is a Fortune 500, American
multinational corporation headquartered in Purchase,
NY.
Manufacturing and marketing a wide variety of
carbonated and non-carbonated beverages, as well as
salty, sweet and grain-based snacks, and other foods.
Their main product, Pepsi Cola, sells over 100
billion cans a year.
Besides the Pepsi-Cola brands, the company owns
the brands Quaker Oats, Gatorade, Frito-Lay, SoBe,
Naked, Tropicana, Copella, Mountain Dew, Mirinda
and 7-Up (outside the USA).
 Indra.k. Nooyi
Chairman and CEO PepsiCo

Indra Krishnamurthy Nooyi has been the chief

executive of PepsiCo since 2006.

During her time, healthier snacks have been

marketed and the company is striving for a net-
zero impact on the environment.

This focus on healthier foods and lifestyles is

part of Nooyi's "Performance With Purpose"
philosophy.
Founded New Bern N.C, U.S.
(1890)
Founders Caleb Bradham, Donald
M. Kendall and Herman
W. Lay
Headquarters Purchase, New York, U.S.

Area served Worldwide

Key people Indra Nooyi

(Chairperson and CEO)[1]
 Pepsi
Diet Pepsi
Mountain Dew
AMP Energy
Aquafina
Sierra Mist
SoBe
Starbucks Frappuccino
Lipton Iced Tea
7up
Mirinda
Izze
Tropicana Products
Copella

Products
Naked Juice
Gatorade
Propel Fitness Water
Quaker Oats Company
Lay's
Doritos
Cheetos
Kurkure
Fritos
Rold Gold
Ruffles
Tostitos
Slice
Beverages

PEPSICO INDIA’S EXPANSIVE PORTFOLIO INCLUDES ICONIC

REFRESHMENT BEVERAGES PEPSI, 7 UP, NIMBOOZ, MIRINDA AND
MOUNTAIN DEW, IN ADDITION TO LOW CALORIE OPTIONS SUCH AS DIET
PEPSI, HYDRATING AND NUTRITIONAL BEVERAGES SUCH AS AQUAFINA
DRINKING WATER, ISOTONIC SPORTS DRINKS - GATORADE,
TROPICANA100% FRUIT JUICES, AND JUICE BASED DRINKS –
TROPICANA NECTARS, TROPICANA TWISTER AND SLICE. LOCAL
BRANDS – LEHAR EVERVESS SODA, DUKES LEMONADE AND MANGOLA
ADD TO THE DIVERSE RANGE OF BRANDS.
Food
PepsiCo’s food division, Frito-Lay, is the leader in the branded salty snack
market and all Frito Lay products are free of trans-fat and MSG.

It manufactures Lay’s Potato Chips, Cheetos extruded snacks,

Uncle Chips and traditional snacks under the Kurkure and Lehar brands.

The company’s high fiber breakfast cereal, Quaker Oats, and

low fat and roasted snack options enhance the healthful choices available
to consumers.

Frito Lay’s core products, Lay’s, Kurkure, Uncle Chips and

Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats
and all of its products contain voluntary nutritional labeling on their
packets.
Revenue ▲ US$43.2 Billion (FY 2009)

Operating income ▲ US$8.04 Billion (FY 2009)

Net income ▲ US$5.95 Billion (FY 2009)

Total assets ▲ US$39.8 Billion (FY 2009)

Total equity ▲ US$16.8 Billion (FY 2009)

Employees 185,000 (2008)

Divisions PepsiCo Americas (PepsiCo Ameri
Food, PepsiCo Americas
Beverages), PepsiCo International

Website PepsiCo.com
Establishment Investment Employment
PepsiCo established it's PepsiCo India and its PepsiCo India provides
business operations in partners have invested direct and indirect
India in 1989 and has more than USD1 billion employment to 150,000 people
grown to become one of the since the company was including suppliers and
country’s leading food and established in the distributors.
beverage companies. One of country.
the largest multinational
investors in the country,
PepsiCo has established a
business which aims to
serve the long term
dynamic needs of consumers
in India.
 VS

Coca-Cola and Pepsi are the two most popular and

widely recognized beverage brands in the world.
Within their lineup of beverages, Pepsi-Cola and
Coca-Cola Classic are the predominant carbonated
cola beverages.
 BASIS OF COMPARISON
Contents:
Taste
Sweetness
Carbonation
Brand war
Marketing approach
Advertisements
Local competitors
Employees plant & machinery
conclusion
Brand War
Both drinks are no longer seen as a
beverage but mainly as a brand.
Both companies commit heavily to
sponsoring outdoor music festivals
and even charitable projects in third
world countries,
Marketing Approach
Both Coca-Cola and Pepsi try to market as part of a life-style.
Coca-Cola uses phrases such as "Coke side of life" in their
website,
while Pepsi uses phrases such as "Hot stuff" in their website,
to promote the idea that Pepsi is "in sync" with the cool side
of life.
Pepsi tries to reach out to the younger generation by
appealing to pop culture. If you visit their website you will be
greeted with flashy pages containing pop music, cars, and
fashion.
Coca-Cola's website also has links for music and sports, two
arenas in which soda-pop is often consumed; however,
Coca-Cola's is less flashy and uses a classical appeal, most
likely because of Coca-Cola's long history as the standard for
cola beverages
Advertisements
Coca-Cola has Amir khan
featured in their commercials,
while Pepsi has Ranvir kapoor .
THANK YOU