PEPSICO Recent trends, Development & New Partnership Models in Processed Food, September 14, 2011 Rajiv Wakhle Director Operations.

PEPSICORecent trends, Development & New

Partnership Models in Processed Food, September 14, 2011

Rajiv Wakhle

Director Operations

Rajiv Wakhle

Director Operations

PepsiCo- Global Fact Sheet

• Second Largest Food And Beverage Company

• Annualized Revenues Of Nearly $ 60 Bn

• Largest Portfolio Of Billion Dollar Food And Beverage Brands- 19

• Employs 285,000 People Worldwide

PepsiCo in India

• Largest Food and Beverage Business in India

• Third Largest FMCG Business

• We provide direct/indirect employment to over 150,000 people

• Pioneering work done in Agriculture and work with over 22,000 farmers

• We are nourishing and delighting India for 20 years

• Largest Food and Beverage Business in India

• Third Largest FMCG Business

• We provide direct/indirect employment to over 150,000 people

• Pioneering work done in Agriculture and work with over 22,000 farmers

• We are nourishing and delighting India for 20 years

Performance with Purpose Promise of PepsiCo

Human Sustainability: To encourage people to live healthier by offering a choice of both enjoyable and wholesome foods and beverages.

Environmental Sustainability: To be good citizen of the world, protecting Earth’s natural resources by innovation and more efficient use of land ,energy, water and packaging in our operations

Talent Sustainability: To invest in our associates to help them succeed and develop the skills needed to drive company’s growth, while creating employment opportunities in the communities we serve.

Promise of PepsiCo

Environment Sustainability Human Sustainability

Farmers Upliftment

60% Farmers Small & Marginal

90% Farmers RetentionAssured Farm Income

60% Farmers Small & Marginal

90% Farmers RetentionAssured Farm Income

Drip

DSR

Farmer PepsiCo

Quality based fixed buyback

‘Pay for Performance’ systems to drive quality and continuous supply

Provide technical support and extension services for chip grade farm practices.

Locally evolved Farmer’s Organization

Directly with the Farmer

Market linked self sustaining Farming Model

Agri Companies

Banks

Storage Services

Input Companies

Insurance

“Partners in Progress” Model

Seed Companies

Govt

Advantaged Seed

Program support

Partnership in Multi Crops, Strong Relations

Potato

• Integrate 14000 farmers

• Collaborative Farming on 13000 acres

• Network in 9 states

Oats

• Integrate 500 farmers

•Expanding in North India

• Scale up Potential to 50000 Acres

Rice

• Integrate 7,500 farmers

• Tech. Support 12000 acres

• Network in 4 states

Strong Partner Relationships

• Banks - National Level Tie up with --SBI – Priority Banking

• Crop Weather Insurance – ICICI Lombard

• Agri – Input Companies – Bayer– DU-Pont

• Government Bodies– Institutes - CPRI, IGFRI, IARI, IRRI– Agri Universities – PAU,RU

• Banks - National Level Tie up with --SBI – Priority Banking

• Crop Weather Insurance – ICICI Lombard

• Agri – Input Companies – Bayer– DU-Pont

• Government Bodies– Institutes - CPRI, IGFRI, IARI, IRRI– Agri Universities – PAU,RU

Traditional Cold Stores –Bag StoresLeading to Quality Deterioration

and Mounting Losses

Global Companies Cold Store Technology

Modern Cold Stores- Bulk StoresMaintain Optimum Storage Condition

Long Storage – Reduce Losses

Omnivent ,HollandETA ,Dubai

World Class Mini-Tuber Seed Facility

Interventions

Automation in Agri-Ops to Min. Losses

Simple power tiller can significantly improve the quality of ridges and soil cover

Traditional form of harvesting results in higher damage to potato & low efficiency

Simple Mechanical harvesters can improve efficiency and reduce damages.

Earthling up using spades doesn’t provide adequate soil cover

Traditional Transplanting Farmers Field Inspection

Paddy Nursery Raising Traditional Puddling

Traditional Paddy Operation, Labor intensive

Direct Seeding Demonstration

DSR Crop at 65 Days DSR Crop at Panicle Stage

Farmers Camp-Barnala Farmers Camp Jalandhar

Direct Seeding Irrigation Efficiency

PepsiCo has perfected the technology through field trials over 5 years.

• Water saving of about 1 million liters / acre• Farmer saves about Rs. 1500 / acre • Methane emission reduction of 75%

PepsiCo has perfected the technology through field trials over 5 years.

• Water saving of about 1 million liters / acre• Farmer saves about Rs. 1500 / acre • Methane emission reduction of 75%

40 Days Crop

70 Days crop 120 Days Crop

Direct Seeding Demonstration

Direct Seeding Machine

201100

10100

12200

0

2000

4000

6000

8000

10000

12000

14000

2006 2008 2010 2011

Acres

Direct Seeding Acres

New Crop OATS in Rajasthan, UP & MP

Oats planted at MP Oats Crop at Harvesting Stage

Oats Crop at Rajasthan Oats Crop at UP

Efforts in Drip Irrigation of Potato

• Initiated drip irrigation in water deficient Satara in MH

• Productivity and Quality incentives to increase income

• Drip Irrigation incentive to cover costs in three years

• Converted 2100+ acres benefitting 2000 farmer families

• Helped farmers save more than 2.1 Billion Liters of water

Productivity Benefits :

• Increase in Productivity by 31% (7.2 MT per acre Vs 5.5 MT average; highest 10.5 MT)

• Improved Potato Quality (More solids, Less Defects)

Rich Harvests Happy Partners