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The thirst for global presence made Pepsi to venture in India with already inroads in 150 countries before

India. The major market for PepsiCo, the US, seemed to be reaching saturation levels. India was a lucrative destination since its vast population offered a huge, untapped customer base.

Punjab boasted a healthy agricultural sector with good crop record in past.
Punjab being progressive state with larger landside with farmers. Easy water availability. And High unemployment rate

1st proposal (rejected by govt.)


In May 1985, PepsiCo had joined hands with one of India's leading business houses, the R P Goenka (RPG) group, to begin operations in the country. Planned to import the cola concentrate and sell soft drinks under the Pepsi

label.
PepsiCo's entry into India revolved around promoting and developing the export of Indian agro-based products

The government did not accept the clause regarding the import of the cola

concentrate.
The use of a foreign brand name (Pepsi) was not allowed as per the regulatory framework. Pepsi come up with new proposal with commitment of: agricultural revolution

To create many employment opportunities.


that would tempt many of the terrorists to return to society...

The company would focus on food and agro-processing and only 25% of the investment would be directed towards the soft drink business. The company would not only bring advanced food processing technology to India, but also provide a boost to the image of products made in India in foreign market. Foreign brand name would not be used. Creation of jobs for 50000 people across the nation , of which 25000 were in

Punjab.
An agriculture research center would be established. Pepsi(36.89%) came up with joint venture with PAIC(36.11%) and Voltas India Ltd(24%).

The company had promise to provide jobs to 50000 people , but by 1991 it had employed only 783 as direct employ, but by 1992,this figure increased to 909 and by 1996 it rose 2400. Pepsi also failed to adhere to its commitment to export 50% of its production. Its exports to fruit/vegetable based products was negligible. Pepsi began exporting products such as tea ,rice and leather products.

Questions were asked in parliament regarding Pepsi commitment .


A team of government officials visited company plant and found that Pepsi had

not made any efforts to export 40% of goods it manufacture.

In the early 1990s, the Government of India was facing a foreign exchange crisis.
Organizations like the International Monetary Fund agreed to help the Indian government deal with the financial crisis, on condition that it liberalized the Indian economy. Pepsi benefited from the economic changes in many ways. The removal of various restrictions meant that it no longer had to fulfill many of the commitments it had made at the time of its entry. Under the new economic policy , the use of the foreign brand names in India was allowed Consequently , Pepsi changed its colas name from Lehar Pepsi to Pepsi. In1995,the beverage business grew by 50% and it surpass the Pepsis turnover by 1.25 billion.

Pepsi's tomato farming project was primarily responsible for increasing India's tomato production. Pepsi offered its contract farmers advanced equipment such as trans planters

and seeding machines to help them carry out their task efficiently and speedily.
Contract farming has been encouraged by Pepsi. In late 1990, the company finally met its commitment to set up agro research centers in Punjab and Karnataka.

Reward and Recognition Scholarship Program Learn smart( Training and development facilities ) Occasional Gifts Annual free medical checkup Uniform distribution System of half yearly appraisal review Employee Recognition program Home Visit/Nanhe Sitare Safety related Training Sports day and Annual day Community Development in villages of associates Monthly employee communication: Sankalp Birth day celebration Of employees Idea Acceptance Award Employee of the month

Developing Talent Sustaining competitive advantage by attracting, developing, and nurturing top talent Meet needs of multicultural, multigenerational global workforce Expanding opportunities through Diversity and Inclusion

Associates are recognized for contributions Respect for employees work/life preferences Associates are valued for unique differences they bring to the workplace
Providing a Safe and Healthy Work Environment

PepsiCo serves as chief partner in the global program of the World Health Organization Workplace Wellness Unit Workplace Human Rights policy HIV/ AIDS policy

In the off season Indore games should planned.


Some picnics with the staff should arranged. Some reward ceremonies should be organized. Pepsi in the Long Run Better marketing and advertising strategies More widely accepted

More market share

Not only at the Head Quarter but also at the plant level HR Practices plays an important role and these practices are responsible for employee motivation and employee satisfaction. This would have a great impact on the employee performance. The company would be better than others because nowadays every one has great technologies and machines but if employees are not motivated then the result could not be as desired.

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