Calcutta, June 9: Bengal has emerged as the first destination for PepsiCo to churn out its entire range of snacks in India with the launch of the nacho chips line at its Sankrail factory in Howrah.

The company has invested Rs 100 crore to manufacture Doritos - one of the billion-dollar brands of the American food and beverage giant - from the Bengal unit that produces all the other snacks Pepsi sells in India.

The installed capacity of the new line, tucked inside the factory located on National Highway 6, will be 3,000 tonnes per annum - enough to meet the initial demand of the product.

Explaining the rational of the fresh investment in the plant, Niteen Pradhan, vice-president (supply chain & operation) of PepsiCo India, said it was logical for Pepsi to choose Sankrail.

"It is one of the best we have globally in terms of capabilities. Close proximity to the source of corn also helped," Pradhan said after the launch of Doritos in Calcutta today.

Pepsi, which works with 12,000 potato farmers in Bengal to manufacture Lays potato chips, is sourcing two special varieties of corn from Bihar's Purnea. Going forward, the company may procure from West Dinajpur district in north Bengal.

"We are always keen to procure raw material close to the plant. As volume picks up, we hope to start procuring from Bengal too as it would bring down the logistic cost," he said.

The Sankrail plant, which came up in 2004 at Sudha Ras food park of West Bengal Industrial Development Corporation, also produces Kurkure and Cheetos - two other snacks from the PepsiCo stable available in India.

PepsiCo has 62 manufacturing facilities in India, 43 for beverages and 19 for snacks. However, only a handful of them are owned and operated by the company, the majority being contract manufacturers.

Roll-out plans

PepsiCo started test marketing imported Doritos in select markets before it started producing from the Bengal plant. Available in two varieties - cheese and sweet chilli - the company plans to leverage its distribution network to reach out to traditional and modern trade in 40 cities, apart from offering online.

Jagrut Kotecha, vice-president (snacks) of PepsiCo India, said nachos is the fastest growing category in the Indian salty snacks segment.

"The market size is Rs 200 crore (about 4,000 tonne in terms of volume) and growing by 40-45 per cent," he said.

Doritos would be the third master brand from PepsiCo in India. "We have come with three pack sizes, targeting the 18-24 age category in urban and semi-urban localities," Kotecha added.

Cornitos of Greendot Health Food is the market leader in tortilla corn chips, popularly known as nachos.