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PepsiCo is a leading global food and beverage company with brands that are respected
household names throughout the world. PepsiCo entered India in 1989 and in a short
period, has grown into one of the largest food and beverage business in the country.
PepsiCo India’s diverse portfolio includes iconic brands like Pepsi, Lay’s, Kurkure,
Tropicana 100%, Gatorade and Quaker. Presently PepsiCo India provides direct and
indirect employment to more than 200,000 people. The Company’s growth has been
guided by PepsiCo’s global vision of “Performance with Purpose”. This means that while
businesses maximize shareholder value, they have a responsibility to all the stakeholders,
including the communities in which they operate, the consumers they serve and the
environment whose resources they use. The Company has pioneered and established a
model of partnership with farmers and now works with over 24,000 happy farmers across
nine states. PepsiCo India’s award-winning Waste to Wealth recycling program benefits
nearly 500,000 people. PepsiCo India emphasizes “Winning with Diversity and Inclusion”
and has a significant number of women in the leadership team in India. The Company has
won the prestigious Helen Keller Award from the National Centre for Promotion of
Employment for Disabled People (NCPEDP).
In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to
achieve a ‘Positive Water Balance’ (PWB) status in the beverage world, as independently
assured by Deloitte Touché Tohmatsu India Pvt. Ltd. The Company has been Water
Positive since then. In 2012, PepsiCo India achieved a PWB of 8258 million liters — giving
back more water to the community than our facilities consumed. This was made possible
through innovative agricultural interventions such as direct seeding of paddy and drip
irrigated potato cultivation, water efficiencies across operations, rainwater harvesting and
community water recharge.
One of PepsiCo India’s bottling units is located in the village of Pothireddypalli, near
Sangareddy in the southern state of Andhra Pradesh. This facility receives water from the
municipal authority, the Hyderabad Metropolitan Water Supply and Sewerage Board. The
plant is being operated since 2006 by PepsiCo India. In 2008, following the identification of
a need by the community, PepsiCo India carried out an initial water resource mapping and
planning exercise. The study revealed that, for the village communities around the plant,
groundwater formed an important source of water for both agriculture and domestic
purposes. Extensive use of groundwater to grow water-intensive crops like paddy was
lowering the overall groundwater levels in the area. Further, traditional water bodies
(Cheruvu) were silted up, adversely impacting the natural recharge process. Moreover,
disconnect with the watershed and broken spillways were unable to hold the water in these
water bodies. The primary source of income for the community was agriculture with only
one rainfed seasonal crop grown in the region. It was evident that if no action was taken,
the groundwater levels would continue to drop and water would become unavailable for
the communities near the Sangareddy facility, leading to adverse impact on their
livelihoods.
PepsiCo response
Actions Taken
To address the issue, PepsiCo India engaged an NGO, Alternative Development Initiatives
(ADI), for establishing SWRDM (sustainable water resource development model). This
model combines community interventions for water resource development with livelihood
enhancement. As part of this initiative, a detailed hydro-geological study, based on the
watershed, was conducted in and around the Sangareddy facility. Since the community
was the nucleus of this project, a deeply participatory approach was adopted right from the
start. PepsiCo conducted a household baseline survey to better understand the potential
stakeholders. Following the survey findings, PepsiCo reached out to the community to
jointly evaluate potential initiatives, and four key areas were identified. Accordingly, an
implementation strategy was developed to address the short-listed initiatives:
− Agriculture development
A series of issue based trainings were organized with farmers’ clubs. Focused
capacity building of the farmers was conducted by renowned institutions such as
ICRISAT (The International Crops Research Institute for the Semi-Arid Tropics).
Key training topics included good cropping practices, water and land conservation,
on-field water management, soil and plant testing for diseases, multi-cropping,
organic farming and sustainable agriculture. Farmer-to-farmer exposure visits
were organized to allow further sharing of experience with best agri-practices.
− Livelihood enhancement
Both farm and non-farm skill-based trainings on diverse topics were provided to
men and women in the community to help improve their livelihood opportunities so
they are less dependent on one annual agricultural crop. These included creating
a diversified farm package such as horticulture, vegetable gardening, oil seeds,
pulses along with agro-processing and fodder cropping, animal husbandry,
dairying and other related activities. Additionally, alignment between livelihood
interventions and related central / state Government and NABARD (National Bank
for Agriculture and Rural Development) schemes was made. This convergence
allowed the community to leverage funds from the above mentioned institutions to
further improve their income generation.
− Community and gender empowerment
PepsiCo India adopted an inclusive approach to engage with the community and
seek opportunities for their empowerment through establishment or strengthening
of local level institutions. It became clear at the outset that water resource
management is incomplete without integrating the gender dimension. For this
reason, women in the community were facilitated to form their Self-help Groups
(SHGs). These SHGs were encouraged for enrolment in Stree Nidhi Co-operative
Bank for micro-capital. This is the first bank for women in the state of Andhra
Pradesh. Moreover, the women SHGs were also assisted for enrolling in Aam
Admi Bima Yojana (Common Man’s Insurance Scheme) and internet mobile
banking. Other beneficiaries were supported in the formation of local level
institutions including Water Users’ Association (WUA) and Joint Farmers’ Club
(JFC). The groups so formed focused on different developmental aspects catering
to their member constitution.
People Involved
The key partners in this intervention were PepsiCo India and the three beneficiary village
communities. PepsiCo India has gained from the knowledge and experience in establishing
a robust SWRD model. The community was quick to grasp the link between water and
livelihood security and readily became both co-owners and active participants of the water
intervention. Thus, an inclusive engagement with the community through regular dialogue,
consultation, capacity building and co-ownership has made this model sustainable for the
stakeholders involved.
The results
Community water intervention by PepsiCo India near its Sangareddy beverage plant has
positively impacted water availability in the area with the water levels increasing by 4-5 m
in the areas neighboring the rejuvenated water bodies. Overall, more than 7,500
community members have benefitted since the start of the initiative, and about 500 million
liters of water was recharged in the calendar year 2012, nearly as much as water as the
Company used in its operations during the same period.
The community is a proud joint owner and user of its Cheruvu. The Gram Panchayat (local
council), along with WUA, has taken up the ownership of the maintenance of the water
projects. Community members have not only learnt the importance and necessity of water
conservation but are also adept at measuring rainfall through rain gauges and will therefore
be well-equipped to foresee any future water issues as they arise. On the whole, community
members are now equipped to take key decisions related to water availability, cropping
pattern and irrigation keeping the larger development perspective in mind thereby creating
more sustainable livelihoods.
Increased water levels and availability have raised the productivity of paddy (rice crops) by
almost 1.5 times .Sufficiency in water now allows Sangareddy farmers, falling in the project
area, to take more than one crop per year as compared to only one rainfed, water intensive
crop earlier. More than 50 acres have been converted from single to year-round cropping
fields, growing vegetables such as tomato, brinjals (aubergine) and carrots. Together these
initiatives have led to an increase in farmer income levels by about 40%, from INR
12,000/hectare (~USD 210/ha) before the water intervention to about INR 20,000/ hectare
(~USD350/ha) after the establishment of the Cheruvus.
The linking of water security, livelihood security and women’s empowerment has reaped
significant results. Skill-based training to 135 women in the three villages has been found
to be both welcome and useful. Training related to tailoring was especially well-received
such that several women developed the confidence to start their own “home tailoring units”.
So far the women SHGs have been able to avail INR 660,000 in loans from Stree Nidhi
Co-operative Bank.
In sum, these activities have further augmented the income of the families in the
community, and increased resilience of the communities by ensuring they are no longer
dependent on one agricultural product / crop.
Lessons learned
Water-related risks are intensifying across the world, creating both business and societal
pressures. India has about 16%of the world’s population as compared to only 4% of its
water resources. With the present population of over 1,000 million, the per capita water
availability is around 1.170 m3/person/year. However, while India is considered to be “water
stressed”, the per capita water availability does not include disparity in water allocation and
access or the social and economic disparities in water usage 1. Accordingly, the key lessons
learned from our water intervention near Sangareddy have been enunciated below:
Further Information