Union minister of science, technology and Earth sciences, Kapil Sibal, said: “The government decided that the previous conditions of disinvestment which applied earlier should be deleted keeping in view the latest policy and latest conditions recommended by the Foreign Investment Promotion Board. Under this, the PepsiCo India holding private limited will bring additional equity of $50m.”
At the time of Pepsi’s initial investment in India, rules capped foreign holdings in the sector at 51%, and approval for the venture mandated that the firm sells 49% of its local unit within the first five years of operations.
That deadline was later extended, and when rules were relaxed to allow full foreign ownership in the food processing industry, Pepsi asked the government to amend the approval and waive the stake sale condition.
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