Food Processing Industry: The food processing industry in India is a sunrise sector that has gained prominence in recent

years. Availability of raw materials, changing lifestyles and relaxation in policies has given a considerable push to the industrys growth. This sector is among the few that serves as a vital link between the agriculture and industrial segments of the economy. Strengthening this link is of critical importance to improve the value of agricultural produce; ensure remunerative prices to farmers and at the same time create favourable demand for Indian agricultural products in the world market. A thrust to the food processing sector implies significant development of the agriculture sector and ensures value addition to it. The Indian food processing industry holds tremendous potential to grow, considering the still nascent levels of processing at present. Though Indias agricultural production base is reasonably strong, wastage of agricultural produce is sizeable. Processing of fruits and vegetables is a low 2%, around 35% in milk, 21% in meat and 6% in poultry products. By international comparison, these levels are significantly low - processing of agriculture produce is around 40% in China, 30% in Thailand, 70% in Brazil, 78% in the Philippines and 80% in Malaysia. Value addition to agriculture produce in India is just 20%, wastage is estimated to be valued at around US$ 13 bn (Rs 580bn). Soft drinks Industry: The Indian non-alcoholic drinks market was estimated at around US$ 4.43 billion in 2008 and is expected to grow at a compound aggregate growth rate (CAGR) of around 15 per cent during 2009-2012, according to a report published by market research firm RNCOS, titled "Indian NonAlcoholic Drinks Forecast to 2012". This segment is the 3rd largest in the packaged foods industry, after packed tea and packed biscuits. The aerated soft drinks industry in India comprises over 100 plants and provides direct and indirect employment to over 125,000 employees. It has attracted one of the highest foreign direct investments in the country. Its position is strengthened by strong forward and backward linkages with glass, plastic, refrigeration, sugar and the transportation industry. As per the report, the fruit/ vegetable juice market will grow at a CAGR of around 30 per cent in value terms during 2009-2012, followed by the energy drinks segment which will grow at a CAGR of around 29 per cent during the same period. France's Groupe Danone is merging its distribution operations in India with its probiotic drinks joint venture (JV) Yakult Danone India Pvt Ltd for better synergies. Penetration levels of aerated soft drinks in India are quite low compared to other developing and developed markets, which is indicative of the potential the segment holds for further growth.

PepsiCo: PepsiCo entered India in 1989 and in a short period of 20 years has grown into the largest and one of the fastest growing food & beverage business in the country. PepsiCo Indias growth has been guided by PepsiCos global vision of Performance with Purpose. Large investor: One of the largest US multinational investors in the country with an investment of over $1 billion, PepsiCo India provides direct and indirect employment to over 1,50,000 people across the country. No.1 food & beverage business in India: Over the last two years, India's beverage and foods businesses have been the largest volume growth contributors to PepsiCo across the globe. PepsiCo India has been frequently recognized for its industry-leading human resource practices, indovations, corporate values, and talent, and was one of the five top marketers of the country in 2009. A third of PepsiCo India's portfolio today comprises healthier products: PepsiCos portfolio reflects its commitment to nourish consumers with a diverse range of fun and healthy products, making the healthful choice an easier choice. As PepsiCo grows, the portfolio transformation will continue with a systematic plan to reduce added sugar, sodium and saturated fats in its products. Model partnership with over 22,000 farmers: PepsiCo has pioneered and established a model of partnership with farmers and now works with over 22,000 happy farmers across ten states. More than 45% 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 quality seeds, extension services, disease control packages, bank loans, weather insurance, and latest technological practices. Global leader in water conservation: In 2009, PepsiCo India achieved a significant milestone, by becoming the first business in the PepsiCo system to achieve Positive Water Balance (PWB). This means that it replenishes more water than it consumes in its manufacturing operations. This has been validated by Deloitte Consulting.In 2010, PepsiCo India saved 10.1 billion litres of water through various initiatives. For water related environment initiatives, PepsiCo India has received numerous awards such as CII National award for water management, Water Digest award for water practices and Golden Peacock award for water conservation among others. Care for the environment: Following its success in water conservation, the company is now focused on reducing its carbon footprint. Nearly 30% of its energy is today

generated from renewable sources such as rice husk boilers and wind turbines. PepsiCo India also partners NGOs and local administrations in three states of India to recycle household solid waste in an endeavor to keep cities clean. Its award-winning "waste to wealth" recycling program reaches 450,000 families. Exemplary employment practices: PepsiCo India 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. Today women comprise more than 25% of the companys leadership team in India. PepsiCo India currently employs over 100 differently-abled people and has won the prestigious Hellen Keller award from the National Centre for Promotion of Employment for Disabled People (NCPEDP). PepsiCo Chairman and CEO, Indra Nooyi, has announced that PepsiCo would invest USD 500 million in its India operations over the next three years to triple revenues over the next five years. These investments would be spread over manufacturing capacity, market infrastructure, environment sustainability initiatives, R&D, new product development, and agriculture.

Coca Cola: The Coca-Cola Company re-entered India through its wholly owned subsidiary, CocaCola India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly through a model that supports bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 1.3 million retailers. The Coca-Cola Company has invested nearly USD 1.1 billion in its operations in India since its re-entry back into India in 1992. The Coca-Cola system in India directly employs over 25,000 people including those on contract. The system has created indirect employment for more than 150,000 people in related industries through its vast procurement, supply and distribution system. The Coca-Cola Company is the worlds largest beverage company. Along with CocaCola, recognized as the worlds most-valuable brand, the Company markets four of the worlds top five soft drink brands, including Diet Coke, Fanta and Sprite and a wide range of other beverages, including water, juices and juice drinks, tea, coffee and sports drinks.

Through one of the worlds largest beverage distribution system, consumers in more than 200 countries enjoy The Coca-Cola Companys beverages at a rate exceeding 1.6 billion servings each day. The Coca-Cola Company has always placed high value on good citizenship. Their basic proposition entails that the Companys business should refresh the market; enrich the workplace; protect and preserve the environment; and strengthen the community. They have used the distribution network for disaster relief, our marketing prowess to raise awareness on issues such as PET recycling, and our presence in communities to improve access to education and potable waste. Their values serve as a compass for their actions and describe how they behave in the world. o Leadership: The courage to shape a better future o Collaboration: Leverage collective genius o Integrity: Be real o Accountability: If it is to be, its up to me o Passion: Committed in heart and mind o Diversity: As inclusive as our brands o Quality: What we do, we do well The highlights of the year 2010 include: o Entry into the dairy segment with the launch of Maaza Milky Delite in Kolkata. o The globally successful Nestea Ready-to-drink beverage was launched in Mumbai in the last quarter of the year. o Earlier in the year, Coca Cola launched Minute Maid Nimbu Fresh and the product is setting new benchmarks in the lemonade segment. Third Quarter and Year-to-Date Highlights o International volume growth was 5% in the quarter and 6% year-to-date. Worldwide volume growth was led by brand Coca-Cola, up 3% in both the quarter and year-to-date. o Third quarter reported net revenue and comparable net revenue were both $12.2 billion, up 45%, reflecting solid growth in concentrate sales, a 5% currency benefit, positive price/mix and the acquisition of Coca-Cola Enterprises' (CCE) former North America operations in the fourth quarter of 2010. Year-to-date reported net revenue and comparable net revenue were both $35.5 billion, up 44%. o Third quarter reported operating income was $2.7 billion, up 17%, with comparable operating income of $3.0 billion, up 21%, reflecting strong top-line performance, a 6% currency benefit and the acquisition of CCE's former North

America operations, partially offset by commodity costs. Year-to-date reported operating income was $8.2 billion, up 13%, with comparable operating income of $8.8 billion, up 17%, including a 5% benefit from currency. o Coca-Cola Refreshments (CCR) integration efforts are on plan, with expected 2011 net cost synergies of $140 to $150 million. o Company-wide productivity initiatives are well on track to exceed the upper end of the original target range of $400 to $500 million in annualized savings by yearend 2011, the final year of the four-year program. The Coca-Cola Company reported worldwide volume growth of 5% in the quarter and 6% year-to-date. Excluding new cross-licensed brands in North America, primarily Dr Pepper brands, worldwide volume grew 4% in the quarter and 5% year-to-date. Coca Cola continued to see growth in sparkling beverages, with worldwide brand CocaCola volume growth of 3% in the quarter driven by a number of markets around the world, including 17% in India, 11% in Argentina, 7% in China, 6% in Mexico and 5% each in France, Germany and Great Britain.