CHANDIGARH, India: The American multinational Pepsi Cola has agreed to much better terms than its agreement with Soviet Union and China for setting up a food and vegetable processing plant as a joint venture in Punjab. This was stated here by Manohar Singh Gill, Financial Commissioner Development, and Punjab at a meeting of press program in the press club of Chandigarh. Gill said the Pepsi’s agreement with the Communist countries is based on one for one export commitment. In India’s case ratio was going to be S for 1. Mr. Gill was confident that proposed tie up between the Punjab Agriculture Corporation and Pepsi could bring in more than Rs. 200 corers in foreign exchange. In the original proposal, the joint venture projected an export to import ratio of 3 for | for five year terms, under the new commitment, the venture will export 50% of its total annual turn-over. This was estimated to net foreign exchange earnings of five times the Value of total import. In addition the venture agreed to extend its export obligation period to 10 years instead of usual five years.
The composition of export was also very significant; current export of processed food was mainly mango pulp, pickle, and chutney for soft currency marketed around the world. This venture would put India on the map as an exporter of nontraditional processed food and vegetables. Total export of fruits and vegetables concentrate from Punjab is likely to be Rs. 10 corers a year from the present national aggregate of Rs, 9 lakhs only. This venture would give India a foothold in highly competitive world market, according to Mr. Gill.
Article extracted from this publication >> February 19, 1988
