PepsiCo CEO Indra Nooyi sees great growth, hurdles for India

NEW YORK: PepsiCo Inc Chairman and Chief Executive Indra Nooyi has a clear message for her homeland of India -- improve your infrastructure, work force and sanitation, attract more foreign investment, and develop faster. At a panel discussion on Tuesday evening hosted by the Yale-India Initiative, Nooyi said it was tough for her to talk about India, since she has "one foot there and one foot here." She called India a "must-invest" market, citing its demographics, ample work force and pace of innovation. "We see a growth market for the next 50 years at least, which is not the case in many of the other markets we participate in," said Nooyi, the highest-ranking Indian-born woman in corporate America. "We are in India for the long haul." Still, Nooyi said she wanted to talk about India constructively in terms of what can be done better, "so you can attract more investment and India itself can develop faster." The biggest obstacle is infrastructure, she said. "If I use the word 'appalling,' that would be a bit of an understatement," said Nooyi, who hails from the southern city of Chennai. "When we talk about reaching every nook and corner of India we need an infrastructure. ... We need power 24 hours a day in every part of the country. We need water." "I'm not saying developments haven't been made, but it's not as fast as it needs to be," added Nooyi, who has a reputation for being a demanding manager. The next two obstacles are a work force that largely lacks the proper skills and a poor level of health and hygiene, she said. "We think that if you improve education you can improve the hygiene standards in India and you can reduce the incidence of disease," said Nooyi. "And the economy itself will become much more healthy going forward." In 1989 PepsiCo established its business in India, where it now has more than 36 bottling plants including 13 owned by the company and 23 that are franchise-owned. In the latest quarter, its beverage sales volume rose at a double-digit rate. US ECONOMY STILL DELICATE Nooyi, who played in an all-girl rock band in her youth and now enjoys ballroom dancing, came to the United States to attend Yale School of Management. She graduated in 1980. Now a U.S. citizen, she has worked for PepsiCo since 1994. She was named to the top job in October 2006. Nooyi, who turns 55 in October, told Reuters that she is completely focused on making PepsiCo "the defining corporation of the 21st century." But further out, she sees a possibility of public service.