PepsiCo opens Rs 778 crore Assam foods plant to scale Northeast supply

PepsiCo India has inaugurated its first food manufacturing plant in Assam, a 44.2-acre Nalbari facility for Lay’s and Uncle Chipps. The company targets 30,000 tonnes of output by 2027, up from 7,000 tonnes currently, while expanding potato sourcing and farmer partnerships across the region.

— Source publishedThu, 10 Sept, 2026, 17:53 IST·First seen Thu, 10 Sept, 2026, 18:03 IST·Source ET Small Business

What happened

PepsiCo India opened its Rs 778 crore Nalbari, Assam food plant, its fifth in India, producing Lay’s and Uncle Chipps. The facility will expand Northeast and

Key facts

  • Rs 778 crore investment
  • First PepsiCo food plant in Assam
  • Fifth PepsiCo food manufacturing plant in India
  • Rs 5,700 crore investment commitment through 2030
  • 44.2-acre facility
  • More than 5,000 farmers expected to benefit
  • Around 60,000 tonnes of cold storage capacity demand
  • 600+ farmers currently work with PepsiCo India in Assam
  • 7,000 tonnes current production capacity
  • 30,000 tonnes planned production capacity by 2027
  • 50,000-60,000 tonnes longer-term production ambition
  • Around 700 direct and indirect jobs
  • Over 75% women workforce target

Why this matters

The new facility strengthens PepsiCo’s strategic position in Northeast India by pairing manufacturing expansion with deeper farmer partnerships and supply-chain localization.

What to watch

  • Quarterly plant utilization and progress toward the 30,000-tonne 2027 target.
  • Potato contract acreage, farmer participation, crop yields and raw-potato price volatility.
  • Distribution additions and sales growth in Assam, other Northeast states and West Bengal.
  • Competitive pricing, promotions and localized product launches from snack-food rivals.
  • Infrastructure disruptions affecting road connectivity, warehousing or inter-state movement in the region.
  • Expand contract farming, agronomy support, cold storage and potato collection infrastructure in Assam and adjacent Northeast states.
  • Add distributor capacity and smaller retail coverage across Northeast markets and North Bengal to absorb higher plant output.
  • Use lower logistics lead times to increase localized SKUs, seasonal packs and value-price offerings.
  • Phase capacity utilization against demand growth before committing additional regional food-processing investments.