1. Purpose
   1. Performance with Purpose
   2. Human Sustainability
   3. Environmental Sustainability
      1. Partnership with Farmers
      2. Replenishing Water
      3. Waste to Wealth
   4. Talent Sustainability
   5. Goals & Commitments
   6. Community Voices
   7. Partners in CSR
   8. Other Community Initiatives
   9. PepsiCo Foundation

Partnership with Farmers

At PepsiCo India, we see ourselves as an agriculture company. Since our entry into India in 1989, we have worked closely with farmers to help improve both their livelihoods and agricultural yield. Our journey began with our successful introduction of a high-yielding variety of tomato, and we went on to help paddy farmers increase their crop. Today our ventures into crop diversification and the farming of high-quality potatoes and other edibles have transformed the lives of thousands of Indian farmers.

We continue to strengthen our partnerships with farmers across the country to boost their productivity and income. We plan to strengthen farmer connect from 21,000 in 2009 to 50,000 by 2012.

HELPING FARMERS IMPROVE YIELD AND INCOME

The company’s vision is to create a cost-effective, localized agri-supply chain for its business by:

• Building PepsiCo’s stature as a development partner by helping farmers grow more and earn more.
• Introducing new high-yielding varieties of potato and other edibles.
• Introducing sustainable farming methods and practising contact farming.
• Making world-class agricultural practices available to farmers and helping them raise farm productivity.
• Working closely with farmers and state governments to improve agri-sustainability and crop diversification.
• Providing customized solutions to suit specific geographies and locations.
• Facilitating financial and insurance services in order to de-risk farming.

THE JOURNEY SO FAR

Where we stand today, at a glimpse

• Today PepsiCo India’s potato farming programme reaches out to more than 12,000 farmer families across six states. We provide farmers with superior seeds, timely agricultural inputs and supply of agricultural implements free of charge.
• We have an assured buy-back mechanism at a prefixed rate with farmers. This insulates them from market price fluctuations.
• Through our tie-up with State Bank of India, we help farmers get credit at a lower rate of interest.
• We have arranged weather insurance for farmers through our tie-up with ICICI Lombard.
• We have a retention ratio of over 90%, which reveals the depth and success of our partnership.
• In 2010, our contract farmers in West Bengal registered a phenomenal 100% growth in crop output, creating in a huge increase in farm income.
• The remarkable growth has resulted in farmers receiving a profit between Rs. 20,000– 40,000 per acre, as compared to Rs. 10000–20,000 per acre in 2009.

Contact farming

PepsiCo pioneered contact farming in India in 1989, when in order to improve the performance of a tomato processing plant in Punjab, it imported and tested high-yielding varieties that thrived best in India. Consequently, yield improved by over 300% and the length of the tomato season more than doubled, resulting in a substantial increase of farmer incomes. Today, the success of contact farming has spread and PepsiCo engages with over 22,000 farmers across the country to grow a variety of crops. Through this partnership, PepsiCo has transformed the lives of thousands of farmers by helping them refine their farming techniques and raise farm productivity.

Our high-quality seed programme

• In order to provide our farmers the ‘best quality potato seeds’, PepsiCo collaborated with the Thapar Institute of Technology to develop quality potato mini-tubers.
• PepsiCo has also invested in a world-class potato mini-tuber facility at Zahura in Punjab which helps getting robust and disease-free seeds to our company’s contact farmers.

Potato farming

• PepsiCo India has introduced world-class, top-quality, high-yielding potato varieties.
• High-yielding potato seeds have allowed farmers to produce world-class potatoes and obtain higher returns.
• We have partnered with more than 11,000 farmers working across Punjab, Uttar Pradesh, Karnataka, Bihar, West Bengal, Gujarat and Maharashtra for the supply of world-class chip-grade potatoes.
• We have partnered with State Bank of India to get soft loans to all our contact farmers, thus reducing their cost of cultivation and saving them from the clutches of moneylenders (higher interest rates).