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About PepsiCo PepsiCo India Region: Leadership through Performance with Purpose PepsiCo entered India in 1989 and

in a short period of 20 years has grown into the largest and one of the fastest growing food & beverage business in the country. PepsiCo Indias growth has been guided by PepsiCos global vision of Performance with Purpose. This means that while businesses maximize shareholder value, they have a responsibility to all the stakeholders including the communities in which they operate, the consumers they serve and the environment whose resources they use. Large investor: One of the largest US multinational investors in the country with an investment of over $1 billion, PepsiCo India provides direct and indirect employment to over 1,50,000 people across the country. Its beverage and snack food business is supported by 36 beverage bottling plants, (13 company and 23 franchisee owned) and three food plants. PepsiCo Indias diverse portfolio includes iconic brands like Pepsi, Lays, Kurkure, Tropicana 100%, Gatorade, Quaker and young but immensely popular and fast growing brands such as Nimbooz and Aliva. No.1 food & beverage business in India: PepsiCo India has not only grown to become the countrys largest food and beverage business but has also become a powerful and consistent driver of PepsiCos global growth. Over the last two years, India's beverage and foods businesses have been the largest volume growth contributors to PepsiCo across the globe. PepsiCo India has been frequently recognized for its industry-leading human resource practices, indovations, corporate values, and talent, and was one of the five top marketers of the country in 2009. A third of PepsiCo India's portfolio today comprises healthier products: PepsiCos portfolio reflects its commitment to nourish consumers with a diverse range of fun and healthy products, making the healthful choice an easier choice. As PepsiCo grows, the portfolio transformation will continue with a systematic plan to reduce added sugar, sodium and saturated fats in its products. Today, the portfolio includes several healthier treats like Quaker Oats, Tropicana juices, rehydrator Gatorade, Pepsi Max and Cheetos Whoosh. PepsiCo was the first in India to introduce the use of healthier oils for its snacks -- Lays Potato chips, Kurkure and Cheetos. Model partnership with over 22,000 farmers: PepsiCo has pioneered and established a model of partnership with farmers and now works with over 22,000 happy farmers across ten states. More than 45% of these are small and marginal farmers with a land holding of one acre or less. PepsiCo Indias farming program has improved their livelihoods and incomes by providing assured buy back of their produce at pre-agreed prices thus insulating them from open market price fluctuations. PepsiCo provides 360 degree support to the farmer through quality seeds, extension services, disease control packages, bank loans, weather insurance, and latest technological practices. Global leader in water conservation: In 2009, PepsiCo India achieved a significant milestone, by becoming the first business in the PepsiCo system to achieve Positive Water Balance (PWB). This means that it replenishes more water than it consumes in its manufacturing

operations. This has been validated by Deloitte Consulting. PepsiCo is leading a pioneering initiative to replace transplanting of paddy with direct seeding technology which has helped reduce water consumption in paddy cultivation by over 30% and has also cut down GHG emissions by 75%. In 2010, PepsiCo India saved 10.1 billion litres of water through various initiatives. For water related environment initiatives, PepsiCo India has received numerous awards such as CII National award for water management, Water Digest award for water practices and Golden Peacock award for water conservation among others. Care for the environment: Following its success in water conservation, the company is now focused on reducing its carbon footprint. Nearly 30% of its energy is today generated from renewable sources such as rice husk boilers and wind turbines. Initiatives such as agriculture waste boilers in our plants, installation of wind turbines, reduction of use of chemicals, reduction in weight of packaging and film used in product packaging, reduction in weight of metal crowns/polypropylene caps for plastic bottles, conversion of potato waste into bio gas help reduce load on the environment. PepsiCo India also partners NGOs and local administrations in three states of India to recycle household solid waste in an endeavor to keep cities clean. Its award-winning "waste to wealth" recycling program reaches 450,000 families. Exemplary employment practices: PepsiCo India believes in providing employment and growth opportunities to local talent. Its College of Leadership, ensures early identification of talent, and employees focused development through critical experiences. PepsiCo strongly believes in Winning with Diversity and Inclusion. PepsiCo has been offering employment to women employees at the same employment terms and equal growth opportunities as men. Today women comprise more than 25% of the companys leadership team in India. PepsiCo India currently employs over 100 differently-abled people and has won the prestigious Hellen Keller award from the National Centre for Promotion of Employment for Disabled People (NCPEDP). Our Mission and Vision

Our Mission Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors even as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. Our Vision PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environmental, social, economic creating a better tomorrow than today.

Our vision is put into action through programmes and a focus on environmental stewardship, activities to benefit society and a commitment to build shareholder value by making PepsiCo a truly sustainable company. Performance with Purpose At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society delivering what we call Performance with Purpose. Our approach to superior financial performance is straightforward drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability. Human Sustainability

It's a promise to encourage people to live healthier by offering a portfolio of both enjoyable and wholesome foods and beverages. Global goals include:

Increasing global revenues derived from nutritious products from the present US$ 10 billion to US$ 30 billion in the next decade or so. Increasing the whole grains, fruits and vegetables, nuts, seeds and low-fat dairy in its product portfolio. Reducing the average sodium per serving in key global food brands in key markets by 25 percent by 2015. Reducing the average saturated fat per serving in key global food brands in key markets by 15 percent by 2020. Reducing the average added sugar per serving in key global beverage brands in key markets by 25 percent by 2020. PepsiCo India has been at the forefront of leading the human sustainability agenda and some of the initiatives include: The decision to eliminate the direct sale of full-sugar soft drinks to primary and secondary schools around the globe by 2012. Frito Lay's products are MSG and trans-fat free and contain voluntary on pack nutritional labeling.

Breakfast cereal, Quaker Oats, is rich in soluble fibre, beta-glucan, Vitamin B complex and helps in lowering cholesterol. The new Lay's Classic Salted has been launched with 25 percent less sodium. Lehar Gluco+ is a lemon-flavored drink with glucose, electrolytes and iron that provides instant energy and refreshment to consumers. Tropicana 100 % juice range provides essential nutrition and vitamins. PepsiCo offers products with zero or reduced calories such as Diet Pepsi, Pepsi Max and Aquafina packaged water and bulk water. Products with reduced sugar or calories such as Diet Pepsi, Pepsi Max and 7UP light. Gatorade, the worlds leading sports drink, has valuable re-hydration benefits and is scientifically formulated to quench thirst, replace fluids and electrolytes and provide carbohydrate energy. Most of PepsiCo's products are available in a range of packages so consumers can select a size suited to particular occasions and dietary needs. Lehar Iron Chusti is an extruded snack and a sweet biscuit that are richly fortified by EDTA iron delivering 25 percent of the RDA of iron and 50 percent RDA of Vitamin B1 B12 and folate each. The products are made with wholesome local ingredients like grains, peanuts and jaggery. Aquafina packaged water 'Mission to Make India Heart Healthy' Quaker Oats in association with The Times of India and Apollo Hospitals has started 'Mission to Make India Heart Healthy'. The aim of the Heart Health Mission is to make Indians heart healthy by raising awareness about their risk of heart disease. The intention is not to alarm but to forewarn people so that they make timely and habitual interventions. The Mission encourages people to undergo an online heart health check-up onwww.goodmorningheart.com,The site had seen more than 3 lakh people participate till the end of March 2011. As part of the mission, Quaker Oats partnered with Chennai Police and Kochi Police. The police force is at a high risk of heart disease as its personnel lead a very stressful lifestyle, with irregular work timings and diet schedules. The engagement with Quaker Oats included an online health check-up, personalized diet counseling by nutritionists, and a Quaker Oats Heart Healthy breakfast for all police personnel.

Environmental Sustainability

To the planet we all share It is a promise to be a good citizen of the world, protecting the Earth's natural resources through innovation and more efficient use of land, energy, water and packaging in our operations. Our business focuses on sustainable growth and relies on the Earth's natural resources every day. As our business grows in developed, developing and emerging countries, we remain committed to minimizing the impact it has on the environment. We strive to use only methods and tools that are scientifically proven, socially responsible and economically sound. In India, we operate three ongoing initiatives to better the environment. These are closely linked to our business and are areas in which we believe we can make a very positive impact.

Our initiative to replenish water has been a major success. 2009 was a milestone for us we were able to achieve a positive water balance, giving back more water than we consumed through our various initiatives of recharging, replenishing and reusing water.Click here to know more Our efforts to convert waste to wealth have been very fruitful. We have educated community members on how to segregate and recycle their waste. In a project employing over 500 people,

we transform bio-degradable waste into organic manure through vermi-culture.Click here to know more We have also partnered with farmers across the country to help them boost their productivity and income. We have pioneered contract farming, developed robust, high-quality potato seeds, arranged for farmer loans, and aided citrus growers in a variety of ways. Click here to know more Our Goals and Commitments In 2009, we announced 15 global goals and commitments to guide our work to protect the Earth's natural resources through innovation and more efficient use of land, energy, water and packaging in our operations. We are focusing our work where we can make the most positive impact (water, packaging, climate change and agriculture) and on key policies and partnerships to help provide solutions to address the world's environmental challenges. Water: Respect the human right to water through world-class efficiency in our operations, preserving water resources and enabling access to safe water Improve our water use efficiency by 20 percent per unit of production by 2015. Strive for positive water balance in our operations in water-distressed areas. Provide access to safe water to 3 million people in developing countries by the end of 2015. Land and Packaging: Rethink the way we grow, source, create, package and deliver our products to minimize our impact on land Continue to lead the industry by incorporating at least 10 percent recycled polyethylene terephthalate (rPET) in our primary soft drink containers in the US, and broadly expand the use of rPET across key international markets. Reduce packaging weight by 350 million pounds, avoiding the creation of 1 billion pounds of landfill waste by 2012. Work to eliminate all solid waste to landfills from our production facilities. Climate Change: Reduce the carbon footprint of our operations Improve our electricity use efficiency by 20 percent per unit of production by 2015. Reduce our fuel use intensity by 25 percent per unit of production by 2015. Commit to an absolute reduction in GHG emissions across global operations. Community: Respect and responsibly use natural resources in our businesses and in the local communities we serve Apply proven sustainable agricultural practices on our farmed land. Provide funding, technical support and training to local farmers. Promote environmental education and best practices among our associates and business partners. Integrate our policies and actions on human health, agriculture and the environment to make sure they support each other. PepsiCo Foundation PepsiCo Foundation activities in India

PepsiCo's philanthropic anchor, PepsiCo Foundation is committed to developing sustainable partnerships and programmes that provide opportunities for improved health and inclusion and a better environment.

The total funding for India has been $11mn (200810) The programmes have benefited more than 300,000 people in nine States of India The foundation supports projects in the following focus areas: Health: Food security; Improved and optimum nutrition; Energy balance Health Alliance Project: This research project focuses on reducing chronic diseases by promoting healthy diets and physical activity and controlling tobacco use. The project is being implemented through integrated interventions to drive policy and environmental changes. Impact: Lower rates of obesity and chronic diseases (cardiovascular problems and diabetes). Reach: 12,000 people in Kerala. India grant: $1.13mn during 200710. Save the Children Project: The project catalyzes community-based interventions to deliver integrated health and nutrition solutions to children under 5, young mothers and pregnant and lactating women. Save the Children works with community health educators to provide families important information about health, nutrition, water, sanitation and hygiene. Reach: 100,000 people in Rajasthan. (The project reaches 50,000 beneficiaries including children under 5, young mothers and pregnant and lactating women through health and nutrition interventions. It reaches another 50,000 people through water and sanitation initiatives. India grant: $4.4mn during 200911. Environment: Water security; Sustainable agriculture; Adaptive approaches to our changing climate Earth Institute at Columbia University Project: The project tests methods that deliver 'more crop per drop'. This approach focuses on water security through water harvesting, recharging, watershed management and innovative irrigation practices. It is envisaged that the project will empower private and public communities with practical new methods to use water more efficiently both now and in the future. The project is developing research, tools, and strategies to improve agricultural income and water use through policy reform and private sector contributions to the agricultural value chain in terms of market development, technology transfer and risk management. Reach: 500 farmers across Punjab and Gujarat. India grant: $1.15mn during 200810. Safe Water Network

Project: This project focuses on providing affordable potable water at the community level by harvesting rainwater, installing small water village kiosk purification systems and building cisterns and community tanks. Reach: 55,000 people across Rajasthan and Andhra Pradesh. India grant: $1.1mn during 2008 Water.org Project: The project acts as a catalyst to introduce microfinance to the water and sanitation sector and provides household water connections and toilets. Reach: 150,000 people in Tamil Nadu, Karnataka, Andhra Pradesh, Orissa and Maharashtra. Water.org is one of the Foundation's largest partnerships in terms of reach. India grant: $3.64mm during 200810.

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