Region status for india-PepsiCo's big plan

Recently PepsiCo awarded "Region" status to India. The company will hold its annual board meeting in India for the first time in mid-September. India will be the second country after Mexico to have the annual board meet. The $43-billion beverages and snacks company has been very successful in India, even if when the parent company was facing the global down turn. Chairman and CEO of the company hails from India that may be a reason for getting this Region status, but what I feel there are more solid reasons behind it.

1. Decentralization: Allocating the "region" status will facilitate more independent decision making process and faster allocation of resources. It has integrated its beverages and snacks under a common leadership in line with Indra Nooyi's "power of one" strategy. Indian brass of management will take decision according to the Indian market only, which is best suited for India.
2. The Indian wing has given them an all time high growth of 33-35% last year at a time when its parent was struggling to make profits. That shows the high growth opportunities that India has for the comapny. Besides this it has to tackle Coca-Cola in Indian market which is a big task itself. The investment of PepsiCo in India is already $1 billion and it has plan of investing a total of $500 million over three years.

So hope to see a complete turn around, when the biggies will confront each other.