PepsiCo to Build Seventh Potato Chip Factory in India Amid Rising Snack Demand
PepsiCo has announced plans to establish a new snack manufacturing facility in Mannapparai, located in the Tiruchirappalli district of Tamil Nadu, India. The investment, valued at approximately $71 million (₹590 crore), will expand the company’s snack production capabilities in one of the world’s fastest-growing food markets, with a specific focus on potato chips and other savory snacks.
The new plant will be constructed on a 28-acre site within the SIPCOT Industrial Park in Mannapparai, a location selected for its proximity to major agricultural zones and transportation corridors. The announcement, made in April 2025, marks PepsiCo’s seventh snack production facility in India, underscoring the company’s commitment to long-term growth in the subcontinent.
“This investment reflects PepsiCo’s strategy to strengthen its footprint in India and respond to increasing consumer demand for high-quality snacks,” said Eugene Willemsen, CEO of PepsiCo’s AMESA region (Africa, Middle East, and South Asia).
The Mannapparai project follows two major developments announced by PepsiCo in 2023:
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A $93 million (₹778 crore) greenfield potato chip plant in Nalbari, Assam, scheduled to become operational in late 2025 or early 2026.
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A major capacity expansion at the company’s Mathura facility in Uttar Pradesh, one of PepsiCo’s largest food plants globally.
In line with the Tamil Nadu government’s push to develop Mannapparai as a major food park, the new facility is expected to create hundreds of direct and indirect jobs in the region, supporting both industrial growth and the local agricultural economy. PepsiCo sources potatoes from regional contract growers, and the expansion will likely drive demand for quality processing-grade tubers in southern India.
Strengthening Potato Supply Chains in India
PepsiCo’s potato chip business in India operates on an integrated contract farming model. The company provides certified seed, agronomic training, and off-take agreements to local farmers. The new facility is expected to significantly increase annual raw potato procurement, creating new opportunities for growers and reinforcing the role of potatoes in India’s formal food processing sector.
As consumer demand continues to shift toward packaged snacks, PepsiCo is positioning itself to lead India’s growing savory snack segment. According to Euromonitor, India’s savory snack market is projected to grow at a compound annual growth rate (CAGR) exceeding 11% through 2027, with potato chips being a core category.
Construction of the Mannapparai plant is expected to begin after final regulatory clearances, with commercial production anticipated by 2027. The facility will incorporate modern sustainability features and contribute to the state’s agro-processing capabilities, bolstering India’s position as a key manufacturing hub for PepsiCo’s regional operations.
