INTRODUCTION ABOUT PEPSICO PepsiCo products are enjoyed by consumers one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than US $63 billion dollars in net revenue in 2015, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi- Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than US $1 billion dollars each in estimated annual retail sales. At the heart of PepsiCo is Performance with Purpose – our goal to deliver top- tier financial performance while creating sustainable growth and shareholder value. In practice, Performance with Purpose means providing a wide range of foods and beverages from treats to healthy eats; finding innovative ways to minimize our impact on the environment and reduce our operating costs; providing a safe and inclusive workplace for our employees globally; and respecting, supporting and investing in the local communities where we operate. PepsiCo India Region: Leadership through Performance with Purpose PepsiCo entered India in 1989 and in a short period, has grown into one of the largest MNC food and beverage businesses in the country. PepsiCo’s growth in India has been guided by “Performance with Purpose”, its goal to deliver top-tier 1
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INTRODUCTION
ABOUT PEPSICOPepsiCo products are enjoyed by consumers one billion times a day in more than 200
countries and territories around the world. PepsiCo generated more than US $63 billion
dollars in net revenue in 2015, driven by a complementary food and beverage portfolio that
includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio
includes a wide range of enjoyable foods and beverages, including 22 brands that generate
more than US $1 billion dollars each in estimated annual retail sales. At the heart of PepsiCo
is Performance with Purpose – our goal to deliver top-tier financial performance while
creating sustainable growth and shareholder value. In practice, Performance with Purpose
means providing a wide range of foods and beverages from treats to healthy eats; finding
innovative ways to minimize our impact on the environment and reduce our operating costs;
providing a safe and inclusive workplace for our employees globally; and respecting,
supporting and investing in the local communities where we operate.
PepsiCo India Region: Leadership through Performance with Purpose
PepsiCo entered India in 1989 and in a short period, has grown into one of the largest MNC
food and beverage businesses in the country. PepsiCo’s growth in India has been guided by
“Performance with Purpose”, its goal to deliver top-tier financial performance while creating
sustainable growth and shareholder value.
Large investor in India with strong brands
PepsiCo has been consistently investing in India, in the areas of product innovation,
increasing manufacturing capacity, ramping up market infrastructure, strengthening supply
chain and expanding company’s agriculture programme. The company has built an expansive
beverage and snack food business supported by 62 plants across the country. In two decades,
the company has been able to organically grow eight brands each of which generate Rs. 1000
crores or more in estimated annual retail sales and are household names, trusted across the
country.
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A growing portfolio of enjoyable and wholesome snacks and beverages PepsiCo India’s diverse portfolio reflects its commitment to nourish consumers with a
diverse range of fun and healthier products and includes iconic brands like Pepsi, Lay’s,
Kurkure, Tropicana, Gatorade and Quaker. In addition to the recently launched Lay’s Maxx,
7UP Revive and Tropicana Slice Alphonso, the portfolio includes several healthier treats like
Quaker Oats, Tropicana juices, rehydrator Gatorade, Tata Water Plus and Quaker flavoured
oats.
Model partnership with over 24,000 farmers PepsiCo India has pioneered and established a model of partnership with farmers and now
works with over 24,000 happy farmers across nine states. More than 45 percent of these are
small and marginal farmers with a land holding of one acre or less. PepsiCo provides 360-
degree support to the farmer through assured buy back of their produce at pre-agreed prices,
quality seeds, extension services, disease control packages, bank loans, weather insurance,
and the latest technological practices. The association with PepsiCo India has not only raised
the incomes of small and marginal farmers, but also their social standing.
Global leader in water conservation
In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to
achieve ‘Positive Water Balance’ in the beverage world, and has been Water Positive since
then. In 2015, PepsiCo India saved 12.75 billion litres more that it consumed in its
manufacturing operations. The company made this possible through innovative irrigation
practices like direct seeding, community water recharging initiatives, and by reducing the
consumption of water in its manufacturing facilities. PepsiCo is lauded for its efforts for
water conservation and has received numerous awards such as CII National award for water
management.
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Care for the environment
PepsiCo India is focused on reducing its carbon footprint. In 2015, PepsiCo’s India’s Food
and Beverage plants had a 78% and 41% share from renewable energy sources, respectively
such as bio mass and rice husk boilers and wind turbines. Initiatives such as reduction in use
of chemicals, eco-friendly packaging initiatives and efficient waste management help reduce
load on the environment. PepsiCo in partnership with the NGO Exnora and local
municipalities has also been working on a unique waste collection and treatment model
programme called ‘Waste-to-Wealth’. The award winning programme has positively
impacted more than 5, 00,000 people.
Following the successful implementation of the Waste to Wealth model programme, PepsiCo
India has handed over four municipalities in Tamil Nadu (Chennai, Nagapattinam, Tenkasi,
Cuddalore) and one municipal corporation in Haryana (Panipat), to the respective authority
for sustained delivery.
Exemplary employment practicesPepsiCo India provides direct and indirect employment to almost 2, 00,000 people. The
company believes in providing employment and growth opportunities to local talent. Its
‘College of Leadership’, ensures early identification of talent, and employees’ focused
development through critical experiences. PepsiCo firmly believes that encouraging diversity
means encouraging policies and systems that respect people’s special needs. Not only does
PepsiCo have a vibrant and diverse workforce, it takes the utmost care to make dynamic
business leaders of its employees and foster their career and personal growth through
differentiated experiences and a robust leadership development model.
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Our Mission
As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary foods
and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages
to evening treats. We are committed to investing in our people, our company and the
communities where we operate to help position the company for long-term, sustainable
growth.
Our Vision
At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society – delivering what we call Performance with Purpose.
In practice, Performance with Purpose means providing a wide range of foods and beverages
from treats to healthy eats; finding innovative ways to minimize our impact on the
environment and reduce our operating costs; providing a safe and inclusive workplace for our
employees globally; and respecting, supporting and investing in the local communities where
we operate.
Wherever we do business, Performance with Purpose is our guide. We believe that delivering
for our consumers and customers, protecting the environment, sourcing with integrity and
investing in our employees are not simply good things to do, but that these actions fuel our
returns and position PepsiCo for long-term, sustainable growth.
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Guiding Principles
Care for our customers, our consumers and the world we live in.
We are driven by the intense, competitive spirit of the marketplace, but we direct this spirit
toward solutions that benefit both our company and our constituents. We see our success as
inextricably linked to that of our customers, consumers and communities.
Sell only products we can be proud of.
The true test of our standards is our own consumption and endorsement of the products we
sell. Without reservation. Our confidence helps ensure the quality of our products, from the
moment we purchase ingredients to the moment it reaches the consumer's hand
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Speak with truth and candour
We tell the whole story, not just what's convenient to our individual goals. In addition to
being clear, honest and accurate, we are responsible for ensuring our communications are
understood.
Win with diversity and inclusion.
We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity
brings new perspectives into the workplace and encourages innovation, as well as the ability
to identify new market opportunities.
Balance short-term and long-term.
In every decision, we weigh both short-term and long-term risks and benefits. Maintaining
this balance helps sustain our growth and ensures our ideas and solutions are relevant both
now and in the future.
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Respect others and succeed together
Our mutual success depends on mutual respect, inside and outside the company. It requires
people who are capable of working together as part of a team or informal
collaboration .While our company is built on individual excellence, we also recognize the
importance and value of teamwork in turning our goals into accomplishments.
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Our Global Code of Conduct: Doing Business the Right Way
At PepsiCo, we believe acting ethically and responsibly is not only the right thing to do, but
also the right thing to do for our business.
Our PepsiCo Global Code of Conduct (our "Code") has been revised effective October 1,
2012 to address changing laws that impact our business. It is designed to provide our
employees with specific guidance.
All PepsiCo employees are expected to embrace the principles of our Code and:
• show respect in the workplace;
• act with integrity in the marketplace;
• ensure ethics in our business activities; and
• Perform work responsibly for our shareholders.
Our Code remains our roadmap and compass for doing business the right way.
Speak up If you suspect a possible violation of our Code, we encourage you
to Speak Up and report it
At PepsiCo, our Speak Up hotline provides associates, as well as consumers, business
partners and others with a means to report potential violations of the PepsiCo Global Code of
Conduct, our policies or applicable law.
This hotline is an important part of our culture of ethics and compliance at PepsiCo. All
employees have an obligation to report suspected Code of Conduct violations, and to ask
questions, raise issues and seek guidance when a course of action is unclear. The Speak Up
hotline is available worldwide on a 24/7 basis. Reports may be made by phone at 1-866-729-
4888 in the United States or to dedicated phone lines in other countries throughout the world.
The Speak Up line is an important part of our culture of ethics and compliance at PepsiCo.
All employees have an obligation to report suspected Code of Conduct violations, and to ask
questions, raise issues and seek guidance when a course of action is unclear. The Speak Up
line is widely used and a key component of conducting business ethically and with integrity
at PepsiCo.
Reports may also be made electronically by using the Speak up Web line .The same
protections of confidentiality and, where permitted, anonymity are provided through our
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telephone lines and Webline.
PepsiCo is committed to protecting the rights of those individuals who report issues to
PepsiCo. We prohibit retaliation against any individual who, in good faith, reports a
suspected violation of the law or the Code of Conduct. Any instance of retaliation against an
employee for reporting a concern in good faith is itself a serious violation of our Code of
Conduct, and should be reported. Any employee found to have engaged in such retaliation
will be subject to appropriate discipline.
The Speak Up hotline is widely used and a key component of conducting business ethically
and with integrity at PepsiCo. The total number of Speak Up reports and contacts are
published on an annual basis. The most recently available information is provided below.
Performance with Purpose is our goal to deliver sustained financial
performance by
• Providing a wide range of foods and beverages from treats to healthy eats.
• Finding innovative ways to minimize our impact on the environment and reduce our
operating costs.
• Providing a safe and inclusive workplace for our employees globally.
• Respecting, supporting and investing in the local communities where we operate.
Our Performance with Purpose GoalsSince their introduction in 2007, our Performance with Purpose goals have guided our
strategy and operations every step along our journey. They are integral to how we strive to
“future-proof” PepsiCo for long-term success by aligning what is good for our business with
what is good for society and the planet. Our goals will continue to evolve and adjust to the
changing external environment in which we operate.
Performance with Purpose is built on three pillars:
• Human Sustainability
• Environmental Sustainability
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Human Sustainability
It's a promise to encourage people to live healthier by offering a portfolio of both enjoyable
and wholesome foods and beverages.
Global goals include:
• Increasing the whole grains, fruits and vegetables, nuts, seeds and low-fat dairy in its
product portfolio.
• Reducing the average sodium per serving in key global food brands in key markets by 25
percent by 2015.
• Reducing the average saturated fat per serving in key global food brands in key markets by
15 percent by 2020.
• Reducing the average added sugar per serving in key global beverage brands in key
markets by 25 percent by 2020.
PepsiCo India has been at the forefront of leading the human sustainability agenda and some
of the initiatives include:
• The decision to eliminate the direct sale of full-sugar soft drinks to primary and secondary
schools around the globe.
• Frito Lay's products are MSG and trans-fat free and contain voluntary on pack nutritional
labelling.
• Breakfast cereal, Quaker Oats, is rich in soluble fibre, beta-glucan which helps in lowering
cholesterol.
• The new Lay's Classic Salted has been launched with 25 percent less sodium.
• Lehar Gluco+ is a lemon-flavored drink with glucose, electrolytes and iron that provides
instant energy and refreshment to consumers.
• Tropicana 100% juice range provides fruit nutrients
• PepsiCo offers products with zero or reduced calories such as Diet Pepsi, and Aquafina
packaged water and bulk water.
• Gatorade, the world's leading sports drink, has valuable re-hydration benefits and is
scientifically formulated to replenish electrolytes, and refuel carbohydrate energy.
• Most of PepsiCo's products are available in a range of packages so consumers can choose a
size suited to particular consumption occasion, and offering choices for portion
control.
• Lehar Iron Chusti is an extruded snack fortified with best form of iron (NaEDTA) to
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address pervasive problem of Iron Deficiency Anaemia for base of pyramid
population at an affordable price. Nutritionally a single pack delivers 25 percent of
iron RDA and 50 percent of Vitamin B1, B12 and folate RDA for adolescent girls.
The product has been specifically designed for adolescent girls recognizing the impact
of micronutrient deficiency in context of intergenerational cycle of malnutrition. The
product is made with wholesome local grains like ragi, soya and rice.
• Human Rights Workplace Policy
PepsiCo respects the dignity of our associates in the workplace, and we are accountable to
ensure our associates’ rights to personal security, a safe, clean and healthful workplace, and
freedom from harassment or abuse of any kind.
We deal fairly and honestly with our associates regarding wages, benefits and other
conditions of employment, and recognize our associates’ right to freedom of association. We
do not use compulsory or child labour.
We do not tolerate discrimination and work to ensure equal opportunity for all associates.
We comply with all applicable laws, regulations and other employment standards, wherever
we operate or work.
We encourage our partners, suppliers, contractors and vendors to support these policies, and
we place substantial value on working with others who share our commitment to human
rights.
Environmental Sustainability
It is a promise to be a good citizen of the world, protecting the Earth's natural resources
through innovation and more efficient use of land, energy, water and packaging in our
operations.
Our business focuses on sustainable growth and relies on the Earth's natural resources every
day. As our business grows in developed, developing and emerging countries, we remain
committed to minimizing the impact it has on the environment. We strive to use only
methods and tools that are scientifically proven, socially responsible and economically sound.
In India, we operate three ongoing initiatives to better the environment. These are closely
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linked to our business and are areas in which we believe we can make a very positive impact.
• Our initiative to replenish water has been a major success. 2009 was a milestone for us –
we were able to achieve a positive water balance, giving back more water than we
consumed through our various initiatives of recharging, replenishing and reusing
water.
• Our efforts to convert waste to wealth have been very fruitful. We have educated
community members on how to segregate and recycle their waste. In a project
employing over 500 people, we transform bio-degradable waste into organic manure
through vermi-culture.
• We have also partnered with farmers across the country to help them boost their
productivity and income. We have pioneered contract farming, developed robust,
high-quality potato seeds, arranged for farmer loans, and aided citrus growers in a
variety of ways.
Our Goals and Commitments
In 2009, we announced 15 global goals and commitments to guide our work to protect the
Earth's natural resources through innovation and more efficient use of land, energy, water and
packaging in our operations. We are focusing our work where we can make the most positive
impact (water, packaging, climate change and agriculture) and on key policies and
partnerships to help provide solutions to address the world's environmental challenges.
Water: Respect the human right to water through world-class efficiency in our
operations, preserving water resources and enabling access to safe water
• Improve our water use efficiency by 20 percent per unit of production by 2015.
• Strive for positive water balance in our operations in water-distressed areas.
• Provide access to safe water to 3 million people in developing countries by end of 2015.
Land and Packaging: Rethink the way we grow, source, create, package and deliver our
products to minimize our impact on land
• Continue to lead the industry by incorporating at least 10 percent recycled polyethylene
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terephthalate (PET) in our primary soft drink containers in the US, and broadly
expand the use of PET across key international markets.
• Reduce packaging weight by 350 million pounds, avoiding the creation of 1 billion pounds
of landfill waste by 2012.
• Work to eliminate all solid waste to landfills from our production facilities.
Climate Change: Reduce the carbon footprint of our operations
• Improve our electricity use efficiency by 20 percent per unit of production by 2015.
• Reduce our fuel use intensity by 25 percent per unit of production by 2015.
• Commit to an absolute reduction in GHG emissions across global operations.
Community: Respect and responsibly use natural resources in our
businesses and in the local communities we serve
• Apply proven sustainable agricultural practices on our farmed land.
• Provide funding, technical support and training to local farmers.
• Promote environmental education and best practices among our associates and business
partners.
Integrate our policies and actions on human health, agriculture and the environment to
make sure they support each other.
TALENT SUSTAINABILITYTo the employees of PepsiCo…
It is a promise to invest in them to help them succeed, to work continually to develop
and retain exceptional people and to create employment opportunities in the communities we
serve.
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As PepsiCo continues its journey of sustainable growth, we must continue to hire, retain and
develop our leadership bench and a highly skilled and diverse workforce. After all, our
employees are our greatest strength.
We have an extraordinary talent base across our organization — in our manufacturing
facilities, our sales and distribution organization, our marketing groups, our staff functions
and our general managers.
As we expand our business, we are heightening our focus on ensuring that we maintain an
inclusive environment and develop the careers of our employees. Our goal is to continue to
have the leadership talent, capabilities and experience necessary to grow our business well
into the future.
Our Goals and CommitmentsIn 2009, we announced 12 new goals and commitments to achieve Talent
Sustainability. These reinforce our promise to develop our employees. Our commitments
include enabling our associates to thrive in a diverse, inclusive culture; providing a safe and
empowering workplace; providing opportunities that strengthen our associates' skills and
capabilities; and contributing to better living standards in the communities we serve.
Culture: Enable our people to thrive by providing a supportive and
empowering workplace.• Ensure high levels of employee engagement and satisfaction as compared with other
Fortune 500 companies.
• Foster diversity and inclusion by developing a workforce that reflects local
communities.
• Encourage our employees to lead healthier lives by offering workplace wellness
programmes.
• Ensure a safe workplace by continuing to reduce Lost-Time Injury Rates while
striving to improve other occupational health and safety metrics through best
practices.
• Support ethical and legal compliance through annual training in our Code of Conduct,
which outlines PepsiCo's unwavering commitment to its human rights policy,
including treating every employee with dignity and respect.
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Career: Provide opportunities that strengthen our employees' skills and
capabilities to drive sustainable growth.• Become universally recognized through top rankings as one of the best companies in
the world for leadership development.
• Create a work environment in which employees know that their skills, talents and
interests can fully develop.
• Conduct training for employees from the frontline to senior management, in order to
ensure that employees have the knowledge and skills required to achieve performance
goals.
Community: Contribute to better living standards in the communities we
serve.• Create local jobs by expanding operations in developing countries.
• Support education through PepsiCo Foundation grants.
• Support associate volunteerism and community involvement through company-
sponsored programmes and initiatives.
COMMUNITY INITIATIVES
• PepsiCo India HIV/AIDS InitiativePepsiCo India embarked on the HIV / AIDS journey in 2005, along with our
Technical partner The International Labor Organization (ILO), with the purpose of spreading
awareness amongst all our stakeholders. We have built the whole program in a manner to
build capacity within and externally and have focused on the “Each one Teach one” approach
to ensure sustainability. The program was kicked off by creating a pool of Master Trainers
and Peer Educators who could cascade the program across all our work locations along with
NGOs who were also trained along with PepsiCo employees. We started the program by
cascading HIV / AIDS awareness amongst our employees. This was progressively enhanced
to cover other stakeholders including spouses of employees, business partners, distributors,
contractual workers, and our bottling partners. We further strengthened the impact of our
efforts through community outreach programs where we leveraged our NGO partners across
the country.
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Today we have 58 Master Trainers and 175 Peer Educators across both businesses and our
endeavor is to continue to create more and most Master Trainers and Peer Educators. PepsiCo
India has been awarded TERI Corporate Award for Business Response to HIV/AIDS in 2009.
• PepsiCo India – Akshaya Patra PartnershipPepsiCo India has partnered with Akshaya Patra, an NGO that supports the "Mid-day
meal" program launched by Government of India feeding over 1.4 million underprivileged
students every day of the school year, in 20 locations, across 9 states in India. For children
belonging to the weaker economic sections of society, a full meal, even once a day, is a
strong incentive to stay in school. This program enables hunger free education and it has led
to a significant rise in enrolment and attendance. So this partnership has a simple but
powerful mission - to change the trajectory of countless lives in our community. In the first
stage, PepsiCo India is funding equipment and vehicles to set up a kitchen, near Kapashera,
Delhi which has the capacity to feed 75,000 children through the mid-day meal program.
Through this program PepsiCo India employees can participate in this cause by contributing
as little as Rs 3375 (@ Rs. 675 per child) to keep 5 children in a school in a year. PepsiCo
foundation will match the employee contribution and double the impact.
PEPSICO FOUNDATION
PepsiCo Foundation activities in IndiaPepsiCo's philanthropic anchor, PepsiCo Foundation is committed to developing
sustainable partnerships and programmes that provide opportunities for improved health and
inclusion and a better environment.
• The total funding for India has been $11mn (2008–10)
• The programmes have benefited more than 300,000 people in nine States of India
The foundation supports projects in the following focus areas:
Health: Food security; Improved and optimum nutrition; Energy balance
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• Health AllianceProject: This research project focuses on reducing chronic diseases by promoting healthy
diets and physical activity and controlling tobacco use. The project is being implemented
through integrated interventions to drive policy and environmental changes.
Impact: Lower rates of obesity and chronic diseases (cardiovascular problems and diabetes).
Reach: 12,000 people in Kerala.
India grant: $1.13mn during 2007–10.
Save the ChildrenProject: The project catalyzes community-based interventions to deliver integrated health
and nutrition solutions to children under 5, young mothers and pregnant and lactating women.
Save the Children works with community health educators to provide families important
information about health, nutrition, water, sanitation and hygiene.
Reach: 100,000 people in Rajasthan. (The project reaches 50,000 beneficiaries including
children under 5, young mothers and pregnant and lactating women through health and
nutrition interventions. It reaches another 50,000 people through water and sanitation
initiatives.
India grant: $4.4mn during 2009–11.
• Environment: Water security; Sustainable agriculture; Adaptive
approaches to our changing climate
Earth Institute at Columbia UniversityProject: The project tests methods that deliver 'more crop per drop'. This approach focuses
on water security through water harvesting, recharging, watershed management and
innovative irrigation practices. It is envisaged that the project will empower private and
public communities with practical new methods to use water more efficiently both now and
in the future. The project is developing research, tools, and strategies to improve agricultural
income and water use through policy reform and private sector contributions to the
agricultural value chain in terms of market development, technology transfer and risk
management.
Reach: 500 farmers across Punjab and Gujarat.
India grant: $1.15mn during 2008–10.
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• Safe Water NetworkProject: This project focuses on providing affordable potable water at the community level
by harvesting rainwater, installing small water village kiosk purification systems and building
cisterns and community tanks.
Reach: 55,000 people across Rajasthan and Andhra Pradesh. India grant: $1.1mn during
2008
Water.orgProject: The project acts as a catalyst to introduce micro finance to the water and sanitation
sector and provides household water connections and toilets.
Reach: 150,000 people in Tamil Nadu, Karnataka, Andhra Pradesh, Orissa and Maharashtra.
Water.org is one of the Foundation's largest partnerships in terms of reach.