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Especially the confidence factor plays a great part in her which for the company turned out to be a rather costly factor as PepsiCo had to make various concession before they could enter the Indian market.
The company had to agree to the following provision given by the government;
? having to export five times the value of its imports over the first ten-year period;
? soft drink sales would not exceed 25 % of joint-venture sales;
* PepsiCo would limit ownership to 39...
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The Indian market for soft-drink had been growing rapidly (by 1990 a whole of 3 billion bottles a year consumption expecting to quadrupple during the 1990s. Furthermore India?s population was expected to grow ? even surpass China ? and researchers have even estimated India to become an economic giant in the future as the worlds most poplated country which of course enhanced foreign investments as major sales are expected in the long-run...
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Shames, "The More Factor”
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