US food and beverage major PepsiCo has announced that it has extended its Lay's crisps factory in Bangladesh.
It has opened a new line in its established facility in Bogura. Production in the new unit started earlier this year.
The company said its aim with this step is to meet “robust and growing local demand” for new formats and flavours of the potato snack.
The products made on the site will be sold in the Bangladeshi market.
A PepsiCo spokesperson told Just Food, products from the enhanced facility will be supplied to retailers and direct to customers.
It has set the goal of producing 10.000 tons of crisps in the first year.
The move is part of the 'Lay's Make In Bangladesh' initiative in partnership with Transcom Consumer Products, which has been PepsiCo’s regional partner for 20 years.
“As we unfold this new chapter with Transcom, our partnership will further ensure the region’s strong growth and prosperity,” said Ahmed ElSheikh president of PepsiCo India.
Simeen Rahman, group CEO of Transco, saaid: “This will usher in a new opportunity of enhancing income avenues for farmers, agro firms, transporters, cold storages, and contractual workforce, bolstering the entire eco-system and driving economic growth in the region. We are confident that PepsiCo’s commitment to the market will reciprocate with accelerated growth for the company and its brand Lay’s.”
PepsiCo is organised into seven segments, and India, which covers Bangladesh, belongs to the Amesa division. PepsiCo Amesa contributed 7% of the company's revenue and 6% of its core division operating profit in 2022.
PepsiCo has recently announced its biggest investment in the UK in the last 25 years. The food and drinks giant’s UK and Ireland subsidiary is investing £58m ($72m) in its Walkers crisps manufacturing site in the English city of Leicester.
The funds will be used to for new manufacturing lines and in the upgrading of facilities to boost the production of Walkers crisps and snacks.
PepsiCo also announced plans to invest US$216m into regenerative agriculture projects, which cover over more than million acres of farmland in the US, in March.
The food and drinks giant had entered long-term partnerships with Practical Farmers of Iowa (PFI), Soil and Water Outcomes Fund (SWOF) and the IL Corn Growers Association (ICGA).
