Companies

Pepsi Zimbabwe confident the economy is heading in right direction

VARUN Beverages, the power behind Pepsi Zimbabwe, has disclosed that it is confident of getting a fair return on its investment in Zimbabwe in the medium to long-term after it invested US$50 million in setting a bottling plant in 2018.

Varun Beverages is the largest bottler of PepsiCo carbonated drinks — Pepsi, Mirinda, Mountain Dew and Seven Up — outside the United States.

Apart from sinking US$50 million two years ago in Zimbabwe, Varun spelt out plans to spend US$150 million over the next five years to establish additional bottling lines and food processing units.

The company says: “We have made about US$50 million investment in Zimbabwe and generated direct and indirect employment for about 22 000 citizens of Zimbabwe. We are committed to our investments in the long term.

“We may not be getting a fair return on our investment as of now, but we are confident about the potential of Zimbabwe. . .”

“Shortage of foreign currency and volatility in currency are becoming major risks to our operations.

“However, we are committed to this country for the long term and ready to absorb this short-term pain as we are confident about the potential of Zimbabwe,” the company says.

“With the future revenue and profits generated from the sale of carbonated drinks, we are already looking at avenues of reinvestment like cordial, juices, dairy, education, health care and hospitality, hence further supporting the Zimbabwean community.

“With this new expansion, we will increase our export of beverages and preforms to Zambia, Botswana, Malawi and other neighbouring countries, which will bring in sizeable foreign exchange into Zimbabwe.

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“We are happy to announce that we have added three production lines besides the first PET line. The addition Pet line with 600 bottles per minute production capacity, can line with 400 cans per minute production capacity and Husky line to ensure backward integration to reduce the force requirement by reducing import value by conversion of resin to perform in house using Husky plant.

“Today we have the production capability of producing almost 1.5 million bottles and cans per day. This is almost equal to 10% of Zimbabwean population.”

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