India is rapidly transforming from one of the world’s fastest-growing consumer markets into a major manufacturing base for global fast-moving consumer goods companies. Multinational brands that once viewed the country mainly as a sales destination are now investing heavily in factories, food processing facilities and export-oriented supply chains, marking a shift from “Sell in India” to “Make in India.”
Leading the latest investment wave is PepsiCo, which plans to invest up to ₹5,700 crore by 2030 to expand its foods manufacturing network. The company will establish a concentrates plant in Madhya Pradesh and add snacks manufacturing facilities in Assam and Tamil Nadu. PepsiCo India reported revenue of ₹9,789 crore and a profit of ₹905 crore for the 12 months ended December 2025, while its foods business grew by around 11%.
PepsiCo’s expansion is part of a broader trend across India’s FMCG sector. Coca-Cola’s bottling partners announced investments of nearly ₹25,760 crore across manufacturing projects in nine states. Reliance Consumer Products has also committed around ₹40,000 crore to develop integrated food manufacturing units and AI-enabled food parks in Maharashtra and Andhra Pradesh.
Industry experts say the momentum is being driven by India’s expanding consumer base, policy reforms, improved logistics under the Goods and Services Tax and global efforts to diversify manufacturing beyond China.
Sanjit Singh Paul, Managing Partner at Modulor Capital, said companies are no longer manufacturing in India merely to reduce taxes. They are increasingly using the country to serve both domestic and export markets. GST has also helped manufacturers consolidate production and reduce logistics costs.
India’s location between the Middle East and Southeast Asia is strengthening its position as a regional production hub. The country’s large domestic market, agricultural resources and ability to manufacture at scale are also supporting its emergence under the global “China+1” strategy.
Government measures, including corporate tax reforms, Production Linked Incentive schemes for food processing and state-level subsidies, have encouraged companies to expand local production.
Companies are also investing in cold chains, warehousing, automation and quality systems to support exports of processed foods, frozen products and ready-to-eat meals. The expansion is expected to create employment across manufacturing, food technology, quality assurance, logistics and supply chain management.
It will also benefit farmers, MSMEs, packaging companies and local suppliers through higher sourcing volumes and long-term partnerships. With global FMCG companies increasing their manufacturing commitments, India is positioning itself as an important production and export hub in the global food and beverage value chain.