Nalbari, Assam – Chief Minister Himanta Biswa Sarma on September 10, 2026, inaugurated PepsiCo India’s new potato chips manufacturing facility in Banekuchi, Nalbari district, marking a significant step in Assam’s industrial development and its push for youth employment. The plant, established with an investment of INR 778 crore (USD 81.5 million), is PepsiCo India’s first food manufacturing unit in Assam and its fifth in the country.
The inauguration underscores the Assam government’s intensified focus on industrialisation to generate dignified employment and entrepreneurship opportunities within the state, aiming to curb youth migration. Chief Minister Sarma highlighted that Assam has attracted investments exceeding INR 5 trillion, with projects worth INR 3 trillion currently under implementation, projected to create jobs for nearly 100,000 youths.
What was announced
Chief Minister Himanta Biswa Sarma officially inaugurated the PepsiCo India plant at Banekuchi in Nalbari district on September 10, 2026. The foundation stone for this facility was laid on September 6, 2023. The event saw the presence of key state dignitaries, including Finance Minister Jayanta Malla Baruah and Minister for Skill, Employment and Entrepreneurship Biswajit Daimary, alongside local MLAs Chandramohan Patowary and Narayan Deka. PepsiCo India & South Asia CEO Jagrut Kotecha was also in attendance.
The state-of-the-art facility spans approximately 44.2 acres and is designed to manufacture popular snack brands such as Lay’s and Uncle Chipps. Chief Minister Sarma expressed pride in completing this major food processing project within three years of its foundation stone being laid.
Why it matters
The PepsiCo plant is expected to create 700 direct and indirect employment opportunities, with a notable commitment to gender diversity, as women are projected to constitute 75 percent of the workforce. Beyond direct employment, the facility will significantly benefit 5,000 local farmers through the procurement of chip-grade potatoes.
PepsiCo India’s current annual potato requirement is around 30,000 metric tonnes, which is expected to increase to 70,000 metric tonnes by 2030. This increased demand will strengthen Assam’s agricultural ecosystem by encouraging farmers in districts like Nalbari, Kamrup, and Darrang to cultivate specialised potato varieties. PepsiCo has committed to procuring these locally produced potatoes at predetermined prices, directly benefiting thousands of farmer families.
To support this, the state government plans to include specialised potato cultivation under crop insurance schemes and assist farmers with Kisan Credit Cards for purchasing improved seeds. A tripartite agreement involving the Assam Government, PepsiCo, and State Bank of India is already in place to facilitate this initiative. Furthermore, the plant will generate demand for approximately 60,000 tonnes of cold storage capacity, with Ross Food Chain Solutions having already established a 10,000 metric tonne capacity cold storage facility at a cost of INR 350 million, creating 45 direct and 150 indirect jobs.
The Chief Minister emphasised that products manufactured at the Banekuchi facility would carry the identity ‘Made in Banekuchi, Nalbari, Assam’, enhancing the state’s visibility on India’s industrial map. This investment aligns with the state government’s broader strategy to accelerate industrialisation and create job opportunities within Assam, thereby reducing the need for youth to migrate for employment.
Background
Assam has been actively pursuing an aggressive industrialisation policy to transform its economic landscape and address youth unemployment. Chief Minister Himanta Biswa Sarma has consistently articulated the government’s vision to attract industries and create jobs locally, aiming to reverse the trend of youth migrating to other states for work.
The state’s efforts gained momentum through initiatives like the Advantage Assam global investors’ summits, which have garnered substantial investment commitments. The revised Industrial and Investment Policy of Assam (IIPA) 2019, amended in 2023, has been instrumental in creating an investor-friendly climate, particularly for mega projects requiring a minimum investment of INR 100 crore and generating at least 200 permanent jobs. From Advantage Assam 2.0, held in 2025, the state secured investment proposals worth INR 5.18 trillion.
The government has also focused on other large-scale industrial projects, including a proposed INR 500 billion thermal power plant at Chapor in Dhubri, a 1.2 million metric tonne fertiliser plant at Namrup, and the expansion of Numaligarh Refinery, alongside a significant semiconductor project at Jagiroad. These initiatives are part of a broader strategy to diversify Assam’s economy beyond its traditional strengths in tea, oil, and natural gas, into sectors like petrochemicals, electronics, and food processing.
In terms of employment, the state government has already provided 170,000 government jobs and is initiating recruitment for an additional 200,000 positions. Complementing these efforts are self-employment schemes such as the Chief Minister’s Atmanirbhar Asom Abhiyan, which offers INR 200,000 in collateral-free financial assistance to young entrepreneurs. The Assam Budget 2026-27 further outlines a commitment to creating two lakh employment opportunities over the next five years through industrial expansion.
Key details
The PepsiCo India food manufacturing facility in Nalbari represents a substantial investment and a strategic addition to Assam’s industrial landscape. The key details are as follows:
- Total Investment: INR 778 crore (USD 81.5 million)
- Location: Banekuchi, Nalbari district, Assam
- Plant Area: 44.2 acres
- Products: Lay’s and Uncle Chipps potato chips
- Employment Generation: 700 direct and indirect jobs
- Women Workforce: 75 percent representation
- Farmers Benefiting: Over 5,000 local farmers through potato procurement
- Potato Sourcing Target: From 30,000 MT annually to 70,000 MT by 2030
- Cold Storage Demand: Approximately 60,000 tonnes
- PepsiCo’s India Investment Commitment: INR 5,700 crore by 2030 across India
Reactions
“PepsiCo has started its new potato chips manufacturing plant in Assam. This is the first-ever such kind of project in Assam. We laid the foundation stone of this project in 2023. Today we have inaugurated it. It will directly help 5 thousand farmers, and it will also give employment to 700 young people of Assam. I am really grateful to the Pepsi company for choosing Assam,” Chief Minister Himanta Biswa Sarma said.
“The inauguration of our Nalbari facility marks a significant milestone in PepsiCo India’s growth journey and reinforces our long-term commitment to India’s development story. Assam’s strong agricultural foundation, evolving infrastructure and growing economic importance make it a natural choice for our next phase of expansion. Through this investment, we are strengthening our manufacturing footprint while creating a positive ripple effect across the value chain, from farmers and local businesses to women, young talent and communities. We are grateful to the Government of Assam for its partnership, enabling this landmark milestone,” Jagrut Kotecha, Chief Executive Officer, PepsiCo India & South Asia, said.
What’s next
The inauguration of the PepsiCo plant is a part of Assam’s ongoing efforts to attract further industrial investments and bolster its economy. The state government is committed to accelerating industrialisation and creating a conducive environment for businesses to thrive, with a clear focus on generating employment for its youth.
PepsiCo India plans to significantly expand its potato sourcing and farmer network in Assam, with procurement expected to rise substantially in the coming years. This expansion is anticipated to further integrate local farmers into the company’s supply chain and promote sustainable agricultural practices across the state. The government’s broader economic vision includes the implementation of other large-scale industrial projects across various sectors.
Additionally, the Assam Cabinet on September 7, 2026, approved the Assam Green Cess Policy, 2026, which aims to impose a green cess on natural resource-intensive sectors. The revenue generated from this policy is intended to support environmental and infrastructure measures, including embankment repairs and renewable energy projects, further contributing to sustainable development in the state.