In a major development for India’s food manufacturing landscape, PepsiCo India has announced a ₹1,266 crore investment to establish a new snack manufacturing plant in Mannapparai, near Tiruchirapalli, Tamil Nadu. This move is part of the company’s long-term growth strategy in South India and further strengthens the state’s positioning as a preferred destination for food processing and industrial expansion.
The plant, to be set up over 28 acres in the SIPCOT Industrial Growth Centre on the Tiruchi-Dindigul National Highway, will primarily focus on the production of potato-based snacks like Lay’s, with potential plans to diversify production lines in later phases.
Boost to Regional Manufacturing and Employment
The facility is expected to generate over 4,000 direct and indirect jobs, significantly boosting local employment and ancillary industries, including agriculture, logistics, and packaging.
PepsiCo’s investment comes at a time when India’s packaged food and beverage sector is projected to grow at 14.5% CAGR over the next five years, driven by rapid urbanization, rising incomes, and a sharp shift in consumer preferences toward branded and ready-to-consume products.
The strategic location of Mannapparai—well connected by road, rail, and in proximity to key agricultural belts—offers logistical advantages and access to raw materials, especially potatoes, which are critical to PepsiCo’s snack portfolio.
Why Tamil Nadu?
Tamil Nadu has been steadily positioning itself as a hub for global food and beverage investments thanks to progressive industrial policies, world-class infrastructure, and a business-friendly environment. The state contributes over 8% to India’s total food processing output and is actively developing industrial corridors in lesser-known regions like Mannapparai to decentralize growth and create jobs beyond urban centers.
According to SIPCOT officials, the Mannapparai Park is being developed as a dedicated food processing zone, offering plug-and-play infrastructure, sustainable utilities, and incentives for global manufacturers. This project marks a key milestone in the state’s ambition to attract over ₹75,000 crore in food processing investments by 2030.
A Supply Chain Game-Changer for South India
From a B2B and supply chain perspective, PepsiCo’s new facility is set to reduce turnaround times, de-risk production bottlenecks, and build resilience across the southern market’s value chain. For restaurants, QSR brands, cloud kitchens, and food aggregators heavily reliant on consistent snack and beverage supply, this new manufacturing base presents a significant logistics and distribution advantage.
It is also expected to spur opportunities for contract farming, regional cold chain logistics, and packaging suppliers, further deepening the F&B ecosystem in Tamil Nadu and neighbouring states.
Broader Implications for the F&B Industry
PepsiCo’s decision to invest in Tamil Nadu is not just a capacity-building move—it’s a strategic rebalancing of its production network to bring it closer to fast-growing consumption centers in South India. The investment also signals growing confidence among global F&B majors in India’s long-term market potential and the regionalisation of supply chains.
As more F&B players eye India’s southern corridor for expansion, this development could very well be the beginning of a new chapter in South India’s emergence as a global food manufacturing hub.
