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PepsiCo wraps up business in Kerala and begins setting base in Uttar Pradesh

Tanya Trivedi by Tanya Trivedi
15 September 2021
in Trending
Pinarayi, Yogi, kerala, Uttar Pradesh, UP
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In a move to provide major boost to the food processing industry in the state, Uttar Pradesh Chief Minister Yogi Adityanath is all set to inaugurate PepsiCo India’s largest foods plant for production of potato chips in Mathura on Wednesday. Last year in Kerala, PepsiCo took an exit ruote from Kerala due to labout issues with its in Kanjikode Palakkad.

PepsiCo’s single largest investment of Rs 814 cr in India

Set up with an investment of Rs 814 crore, the Kosi Kalan foods plant in Mathura marks PepsiCo’s largest greenfield investment in manufacturing in India. A government spokesperson said, “It is also the company’s first ‘Make and Move’ factory, which will cater to the growing demand for its potato chips brand. The state-of-the-art foods plant aligns with the government of Uttar Pradesh’s industrialization-led growth agenda.”

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The food plants will be operational in less than 2 years, all thanks to Yogi government’s policies and reforms like labour regulation, single-window clearance, timely online approvals, and enhanced infrastructure including road and power, the food and beverages.

Plant to increase employment in the state

While on the one hand, the plant setup will boost food processing industry in Uttar Pradesh, it will also create over 1,500 direct and indirect job opportunities in the state. With this setup, the Yogi government is aiming at giving job opportunities to at least 30% women employees. Moreover, the plant will also fulfil the government’s aim of providing equal opportunities to women in the state.

In addition to that, the Kosi Kalan plant will also benefit around 5,000 local farmers in Uttar Pradesh as PepsiCo India intends to buy 1,50,000 tonnes of potatoes annually from the local sources in the state.

Pepsico opts out of business in Kerala

Following agitations demanding a wage hike launched by combined trade union, PepsiCo India Limited, had decided to shut its manufacturing unit in Kerala. Varun Beverages Ltd, a franchisee that operated the unit in Palakkad, had served a mandatory closure notice to the state labour department on Tuesday, after being in lockout since March.

According to a report by ‘The Indian Express’, sources in the management had said that they had to go for lockdown because of the loss caused by the strike in February this year. Even though police protection was provided, employees on duty were reportedly assaulted.

Read more: As PepsiCo decides to shut its manufacturing unit, Kerala is heading down the West Bengal path

However, PepsiCo was not the only business giant facing hurdles in Kerela; Kitex Garments (the biggest private-sector employer in Kerala), also had announced withdrawal from a Rs 3,500 crore investment project, alleging an incessant witch hunt by the government.

Read more: Communist Kerala turns down another company as Kids apparel major Kitex abandons God’s own country

Recently, Kitex Group Chairman Sabu Jacob spoke to CM Yogi during a media interaction. Impressed by business friendly policies, handling of Covid & law & order in UP, he said that he wishes to invest in the state.

World’s second largest kids garment manufacturer, Kitex Group Chairman Sabu Jacob spoke to CM Yogi during a media interaction yesterday. Impressed by business friendly policies, handling of Covid & law & order in UP, he wishes to invest in the state.

CM Yogi said you’re welcome. pic.twitter.com/QTWWRzjBmB

— The Uttar Pradesh Index (@theupindex) September 8, 2021

He also said, “Any investor is looking for peace of mind. UP is the second top business-friendly state and in a short time, the state has achieved a lot on the business side and that too by becoming number two in India. Hopefully, I expect, in another few years UP is going to be number one.”

Multinational companies raining money on Yogi’s UP

While the state of Kerala seems to be walking straight into destitution, Uttar Pradesh has organized various investor summits and expos in the last few years to attract private investment.
As reported by TFI, Microsoft and MACQ Software have stepped up efforts to establish units in Uttar Pradesh. Moreover, South Korean electronics manufacturers are also ready to invest and move their factories to Uttar Pradesh from China. Given the availability of cheap labour, a strong pro-active government, and investment-friendly policies, it is evident that many international companies are considering to shift their factories to Uttar Pradesh.

Read more: Microsoft, Pepsi, and some more multinational companies are raining money on Yogi’s UP

The Yogi government must be applauded for transforming the state from a nightmare for industrialists to a heaven for law-abiding companies.

Tags: KeralaPepsiCoUttar PradeshYogi Adityanath
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