Pepsico Franchise Cost, Investment Required & Profit Margin in 2024
Overview Of Pepsi Company Business In India
PepsiCo is an American multinational food, snack, and beverage corporation headquartered in New York. PepsiCo was founded back in the year 1965 and has always been the latest trend when it comes to the food and beverage industry or market.
The very first Pepsi-Cola drink was created by a pharmacist named Caleb Bradham in New Bern, North Carolina. He was hoping that he could duplicate a drink similar to Coca-Cola and later on his carbonated Pepsi-Cola was introduced in 1898.
PepsiCo proved to be a strong competitor of the carbonated drink manufacturing giant, Coca-Cola. Consumers of the products from each of these companies had mixed reviews and it became quite a debatable topic as to which one has a much better taste.
PepsiCo is now considered to be one of the largest food and beverage companies in the world with its products available in more than 200 countries.
Overview Of Pepsi Company Business In India
PepsiCo entered the Indian market quite late which was not until 1989 and has grown to become one of the largest MNC food and beverage businesses in India.
PepsiCo not only rolled out its primary carbonated drinks to Indian consumers but also introduced its product line in the snacks category as well which included Lay’s, Kurkure, Tropicana 100%, Gatorade, and Quaker.
Consumers started to heavily consume these products widely throughout the country as they were loving the taste of it. On the other hand, PepsiCo was earning huge revenues simultaneously.
PepsiCo currently operates through 37 bottling plants and 3 state-of-the-art manufacturing units in India. PepsiCo grants its independent bottlers exclusive contracts to manufacture, distribute and sell certain beverage products bearing its trademarks within a specific geographic area.
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With these arrangements the company is given the right to charge those independent bottlers for concentrate, finished goods, and Aquafina Royalties and specify the manufacturing process required for product quality.
PepsiCo India has pioneered and established a model partnership with the farmers and works with thousands of them across nine states in the country.
The company offers 360-degree support to them through assured buyback of their produce at pre-agreed prices, quality seeds, extension services, and many more. With this partnership model, the company has helped raise the income of the farmers and also has made a positive impact on their social standing.
Read More : How to Get Campa Cola Dealership?
Other Brands And Subsidiary of PepsiCo
PepsiCo has got many subsidiary brands under its belt which has been successful all over the world. PepsiCo has got 23 brands that are responsible for generating around a billion dollars in revenue. Some of the well-known and one of the most successful brands are as mentioned below.
Frito-Lay
Frito-Lay is the primary subsidiary of the food and beverage company, PepsiCo as it is responsible for marketing and selling a wide range of snacks. The company did merge itself with PepsiCo back in the year 1961 and today, the company has got around 29 snack brands under it with thousands of employees working actively.
Frito-Lay manufactures some of the world-famous snacks like Lay’s potato chips, Doritos tortilla chips, Cheetos cheese-flavored snacks, and many more delicious items. Frito-Lay earned a whopping revenue of $15.8B in the year 2022.
Sabritas
Sabritas is one of the main brands of PepsiCo that manufactures different kinds of chips and Frito-Lay products. The company mainly manufactures popular snacks for Mexico such as Crujitos, Poffets, etc.
In Mexico, the company has gained a huge reputation for its delicious chips. PepsiCo acquired Sabritas in the year 1966.
Quaker
Another famous brand that was acquired by PepsiCo is Quaker. The Quaker Oats company aka Quaker is an American food conglomerate which is based in Chicago.
The company has been owned by its parent organization since 2001. The revenue earned by Quaker Oats in the year 2022 was $3.8 billion.
How To Start A Business With PepsiCo?
PepsiCo offers distributorship programs to interested partners and entrepreneurs. Varun Beverages Ltd is one of the largest franchise holders of PepsiCo’s beverage products in India. If you wish to seek its distributorship then you must be eligible first before you apply for the business.
Make sure you visit the official website of Pepsi and as well as Varun Beverages Ltd to know more about the distributorship program.
Since it is a distributorship program that the company is offering you will have to know how to manage and run a business because if you are inexperienced then it could be a problem for you.
With the recent evolution in technology and the internet, one must also be able to use computers and other related technologies so that business becomes smooth and easy.
Requirements To Start A PepsiCo Dealership
Let us have a look at some of the requirements to start a PepsiCo Dealership in India.
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- Godown area of about 1500 sq ft to 4000 sq ft and an office area of 10 sq ft
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- Commercial vehicle(s) for distribution services and transportation services
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- Manpower required (accountant, marketing manager, driver, helper, loader and unloader)
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- Basic infrastructure (computer, printer, CCTV, inverter, table, chair, etc,.)
Interested entrepreneurs and partners can get in touch with any local distributor to know more details about the distributorship program and its requirements.
Total Investment Required For Pepsico Franchise Cum Distributorship
Considering you have the required space and area for the distributorship of PepsiCo then the investment would be the following amount:
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- Basic infrastructure cost: Around 1 lac
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- Refundable security deposit: 5 lac
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- Commercial vehicle cost: 5 lac (No. of vehicle depends on your route)
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- Initial stock purchase: 10 lacs
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- Working capital: 5 lacs
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- Total Investment: 26 lacs (approximately)
If you wish to open up in a new location by purchasing land then it could be a little higher than the mentioned amount. You need to have a huge amount as a backup considering the increase in expenditure on raw materials and labor costs these days.
Minimum Investment Required For PepsiCo Distributorship
The minimum investment required for PepsiCo distributorship is around 26 lacs approximately. The investment depends on the area in case you are planning to purchase a land or get it on lease.
You would also have to get the required manpower along with other resources to get your business running which is not a cheap option in recent days.
How To Apply For PepsiCo Dealership?
Interested entrepreneurs and partners who wish to open up a distributorship of PepsiCo can directly get in touch with the company personnel. They can also contact the local distributor of the company to know in detail about the application process and other such kinds of details.
It will also be a wise option to do some research about the company before applying for the distributorship program.
Profit Margin Of PepsiCo Franchise
Pepsi has got several beverage products for which you can take the distribution. The cold drink bottles come in three forms in the market which is in plastic bottle, glass bottle, and cans.
The products of the company comes in boxes and each boxes contain around 9 bottles of cod drinks when talking about the larger bottles (2.25 ltrs). The distributor price has been set to around 750-760 and the MRP of each bottles is around 95 and the profit per pack that the distributor earns is 27.
The distributor will earn different profit margin if the size of the bottle changes. This means that for a 1.25 liter a distributor can earn around INR 15.
The overall profit that a distributor can earn is around 15%. If you make a sale of INR 60k per day then you will be earning around INR 9,000 per day.
Is PepsiCo Dealership Profitable?
Pepsi’s products are made available in almost every corner of the country and therefore it will be justified to say that Pepsico Dealership would be a profitable business.
But, after the pandemic session during the past couple of years people have started consuming only products that benefits their health and PepsiCo has rolled out different types of Tropicana products so that people can remain loyal to the company. But, all in all, Pepsi’s dealership will be a profitable business.
Daily Work Culture of PepsiCo Franchise
Employees those who have worked for Pepsi have been quite satisfied with the overall work culture of the company. The company has got pretty good rating when it comes to their quality of work culture.
The company also said to be one of the India’s best workplaces in Health and Wellness in the year 2022. The company has got a strict maintain of its business principles which is one of the reasons why the company has been able to earn good profits every year.
The franchise of Pepsi or its distributorship works in a similar way. Since the products of Pepsi are in great demand always it is the responsibility of the franchise or distributors to make its products available at every corner of the country.
PepsiCo Franchise Review: Problems and Advantages
| Disadvantages | Advantages |
| Products has been perceived as unhealthy which is one of the biggest disadvantages for its franchise. | Pepsi is a globally recognized brand and is ranked second most valuable soft drinks brand. |
| The company has got controversial advertisements at a global level. | Thee power of strategy of the company is one of the reasons for the huge demand on its products. |
| Pepsi is one of the companies that has been named as one of the world’s top three plastic polluters. | The company has its presence all over the world and therefore would need less marketing efforts. |
| It is a strong competitor of Coca-Cola and has suppressed other local brands in India. | It is a strong competitor of Coca Cola and has suppressed other local brands in India. |
Advantages of PepsiCo Franchise
There are a lot of benefits to getting a PepsiCo franchise as mentioned above already. People know that it is a globally recognized brand and several Bollywood actors advertise its products in the country of India.
Therefore, it has become a major attraction for youngsters and as well as middle-aged groups as one of the primary cold-drink companies during the summer season. With such a huge reputation in the market, PepsiCo’s franchise will never be at a loss.