1. Presenter: Rajiv Wakhle
PepsiCo: Adding Value in Potato Supply Chain Through World Class Bulk Potato Stores Technology
4th International Summit cum exhibition on
Food Processing, Agribusiness & Cold Chain.
5th Nov 2012, New Delhi
Presenter: Rajiv Wakhle

2. PepsiCo- Global Fact Sheet
Second Largest Food And Beverage Company
Annualized Revenues Of Nearly $ 66 Bn
Largest Portfolio Of Billion Dollar Food And Beverage Brands- 19
Employs 285,000 People Worldwide

3. PepsiCo in India Largest Food and Beverage Business in India
Third Largest FMCG Business
We provide direct/indirect employment to over 150,000 people
Pioneering work done in Agriculture and work with over 22,000 farmers

4. PepsiCo’s world class manufacturing facility in Kolkata

5. Complete automation untouched by hands

6. Strong agenda on Sustainability
Human Sustainability:
To encourage people to live healthier by offering a choice of both enjoyable and wholesome foods and beverages.
Environmental Sustainability:
To be good citizen of the world, protecting Earth’s natural resources by innovation and more efficient use of land ,energy, water and packaging in our operations
Talent Sustainability: To invest in our associates to help them succeed and develop the skills needed to drive company’s growth, while creating employment opportunities in the communities we serve.

7. PepsiCo’s Agricultural Footprint
Bihar
Potato
PUNJAB
Basmati,; Direct seeding of Rice, potato Seed
RAJASTHAN
Barley, Basmati
KARNATAKA
Potato, Direct seeding
TN – Direct seeding
Gujarat
Maharashtra
Haryana -: Potato, Direct Seeding
West Bengal
Potato
Punjab, Haryana, UP, Bihar, Gujarat, Maharashtra, West Bengal, Chhattisgarh, M.P.
Karnataka
Direct Seeding
Punjab, Haryana TN, Karnataka,
Barley
Rajasthan
Basmati Rice
Punjab
UP -: Potato

8. Lays - A Flagship Brand and Potato Is Our Biggest Raw Material

9. India, a second largest Potato producer
Potato production (Million Tonnes) in different Countries-2010
However, In India, processed potatoes currently constitute less than < 5.0 % of annual production

10. Major Potato producing States in India
2000
4000
6000
8000
10000
Production ('000 MT)
U.P
WEST
BENGAL
BIHAR
PUNJAB
GUJARAT
M.P
ASSAM
KARNATAKA
S T A T E S

11. “Partners in Progress” Model
At PepsiCo, we provide a win-win market linked self sustaining Contact Farming Model
Agri Companies
Quality based fixed buyback
‘Pay for Performance’ systems to drive quality and continuous supply
Program support
Insurance
Govt
Banks
Farmer
Locally evolved Farmer’s Organization
Directly with the Farmer
PepsiCo
Seed
Input Companies
Provide technical support and extension services for chip grade farm practices.
Advantaged Seed
Storage Services
“Partners in Progress” Model

12. PepsiCo initiatives in Potatoes Cultivation in different States
Central (Jan - March)
East (Jan - March)
(Apr-Aug) - Stored Potato
North (Dec – March , Stored Potato (Apr to Aug)
Far South (Aug - Nov)
West (Aug- Nov)
Summer (Kharif) – 25%
Aug - Nov
Winter (Rabi) – 75%
Jan - Mar
Punjab
& Haryana
WB & Bihar
MP - Indore
MH - Pune
KN - Dharwad
UP-Agra
GJ- Deesa

13. Quantity and quality issues
Potato Supply Chain
Factory
4 Months Fresh From South & West
Quantity and quality issues
4 Months Fresh Rabi Crop
FEB - MAR
MAY-JULY
AUG - SEPT – OCT- NOV
OCT-NOV-DEC
DEC- JAN- FEB- MAR
Harvest to STORE
Planting
Harvest
Direct to factory
Planting
Harvest to factory
FRESH SEASON
2800 Kms
Karnataka
Indore
Pune
1400 Kms/5 days
600 Kms/2days
800 Kms/3 days
Kolkata
Channo
2500 Kms/8 days
2,068 Kms/ 7 days
Critical supply period:
August
Nov.-Dec.
APR-MAY-JUN-JUL-AUG
APRIL
AUGUST
5 months Storage Season

14. H. C. J. Godfray et al., Science 327, 812-818 (2010)
Total Food Waste in Developed and Developing Economy
Huge opportunity to add
value in Transportation
/Storage Space
H. C. J. Godfray et al., Science 327, (2010)
Published by AAAS

15. Transportation and Storage are the two of the biggest Controllable Post Harvest Losses
INDIA – Losses in Potato Supply Chain
20% Loss
While the total supply losses are around 14%, losses on stored qtys. are a whopping 20% !!.
East nos. similar
Total Loss
Close to 11 Million tons lost – nearly INR 4800 crores every year ( Assuming Potato Price Rs 4/- per kg)
Huge Wastage in Transportation & Storage – 20% ( 7 Million tonnes Crores )
Increases the cost by 30%

16. Controlling Losses: Brining Global Modern Cold Stores Technology in India and Intervention in Transportation
Improved Transportation
Low Bruising and Damage
Reduce Losses – 1% vs 4%
Modern Cold Stores- Bulk Stores
Maintain Optimum Storage Condition
Long Storage – Losses 3% vs 9%

17. Bulk Potato Store : A Steep decline in storage losses

18. Yellow Springs Instrument (YSI): Technical support to monitor potato condition in stores
The YSI is an enzyme specific biochemistry analyser used to measure sugars in potatoes
Produces results that are specific for Sucrose and Glucose
Name of File.ppt

19. Adding Value by Minimizing Loss in Storage Through Bulk Store
Ensures Predictability - Delivers longer shelf life (8-10 months) with quality produce as compare to 4-5 months in case of traditional stores thereby ensures longer supply windows to industry
Ensures Quality - Maintains desired storage conditions for process potatoes (Right temperature, humidity &CO2)
Cost Advantage - Delivers minimum storage shrinkage and rotage losses (3 to 6 %)
Better Predictability
Better Quality
Better Cost

20. THANKS