The Takeaway: A Q&A With Sameer Jindal on Why Global F&B Giants Are Focusing on India

Can you explain why India is becoming a top priority for leading global food and beverage (F&B) brands?

In a word: opportunity. With more than 1.4 billion people and a rapidly expanding middle class, it’s one of the world’s largest consumer markets. As disposable incomes rise and lifestyles evolve, demand for packaged foods, beverages, and processed products is growing at an extraordinary pace. Urbanization is a major factor here, too—fast-paced city life is fueling the popularity of ready-to-eat meals, snacks, soft drinks, and fast food, especially among younger consumers adopting more “Westernized” food habits.

What’s also exciting is that, despite its size, India remains relatively untapped compared to Western markets. Global brands facing low growth in their home markets are zeroing in on India, with digital transformation, e-commerce, and food delivery making market access easier than ever. Favorable government policies, including efforts to ease foreign investment restrictions and encourage FDI in the retail and food sectors, further enhance the appeal of the Indian market.

From an investment standpoint, India’s allure is crystal clear when you look at the valuation gap. Take Hindustan Unilever, for example—it trades at more than 50 times earnings, while its parent, Unilever PLC, is at just 20 times. Similarly, Nestlé’s Indian arm is valued at 66 times earnings, compared to a mere 17 times for the parent company. These numbers speak volumes about the growth potential and the premium investors place on businesses thriving in India.

What is it about Indian consumers that’s catching the eye of these companies?

The size of the market, of course, but India’s consumer demographic is also a big pull. With rising disposable incomes and shifting tastes, Indian consumers are hungry for variety. With the younger crowd, in particular, it’s all about trying new things, and many see Western brands as aspirational—associating them with quality and modern living.

With the growing consumer interest in health and wellness trends, organic products, and functional beverages, India is aligning well with global food trends, creating an opportunity for Western companies to introduce innovative and premium offerings to the market.

Add to that the surge in smartphone use and e-commerce, and now international brands can easily reach consumers even in smaller cities and rural areas. It’s a game-changer for unlocking India’s vast, untapped potential.

Does product innovation in India differ from Western markets?

New product development (NPD) in India isn’t just about tweaking flavor—it requires a deep understanding of local tastes, cultural nuances, and socio-economic dynamics. With a culinary landscape as diverse as the country itself, regional preferences and local loyalties play a huge role.

For instance, spices vary significantly by region, and local heroes like Arun and Hangyo in ice creams or Sosyo in beverages dominate their respective markets. Global brands must customize their offerings to appeal to these unique preferences.

Take PepsiCo, for instance—it’s hit the mark with products like Lay’s Magic Masala and 7UP Nimbooz Masala Soda, tailored to Indian palates. Spicier snacks, sweeter beverages, and vegetarian options are essential, as are smaller, affordable packaging formats to cater to price-sensitive consumers.

As for cultural sensitivities, companies must be mindful of dietary preferences—avoiding beef and pork and offering certifications like Jain or halal. Affordability, accessibility, and localized distribution are also critical. Smaller pack sizes, value-for-money bundles, and omnichannel availability—spanning mom-and-pop stores to e-commerce platforms—are necessary for success.

Ultimately, NPD in India isn’t just about adaptation; it’s about embracing the diversity, traditions, and aspirations of Indian consumers while innovating for their unique needs.

Which consumer demographics and regions in India are offering the best opportunities right now?

Those with a footprint in India must balance affordable mass-market products with premium offerings for affluent urban consumers. In metros like Bengaluru, Mumbai, and Delhi, younger professionals and tech-savvy millennials drive demand for convenience foods, ready-to-eat meals, and snacks, often shopping online and influenced by social media trends.

Localization is also key to success in India’s diverse market. Brands must adapt flavors to regional tastes, like chaat or South Indian-inspired snacks, and cater to dietary norms with vegetarian and halal-certified options.

How is India’s manufacturing landscape evolving for global F&B brands?

It’s actually evolving quite rapidly, driven by shifting consumer preferences, strategic investments, and government support. The “Make in India” initiative—which attracts foreign direct investment through incentives, such as tax breaks and relaxed regulations—has also been a catalyst, encouraging both global and local companies to expand their operations in the country.

Brands like PepsiCo, Danone, Mondelēz, and Nestlé are increasing their investments. For instance, PepsiCo is setting up a flavor manufacturing facility in Ujjain, while Danone is working on a sustainable farming initiative with dairy farmers in Punjab, aimed at boosting yields and improving cattle welfare.

The growing demand for health-conscious products is pushing manufacturers to focus on natural ingredients, low-calorie options, and fortified foods. Clean-label trends are also gaining momentum, with companies reducing artificial additives, sugar, and salt in favor of more transparent, nutritious options. It’s an exciting time for India’s F&B manufacturing scene as it adapts to meet evolving tastes and trends.

So, what’s The Takeaway?

India is rapidly establishing itself as an exciting frontier for F&B giants, offering a booming consumer market, rising disposable incomes, and an ever-growing appetite for new, exciting products. Its largely underpenetrated markets are now being unlocked through the power of smartphones and quick commerce, while government incentives are paving the way for more foreign investment and local manufacturing. The full extent of India’s potential remains to be seen, but one thing’s clear—this is the market everyone’s watching.