9 November 1987, Government of India Project Approval Board approved PepsiCo second proposal, to enter the country. The package, which was approved showed significant differences, however, from the one that Pepsi and its local partners had proposed more than a year earlier. Pepsi estimated that the implied changes in the project scope, the joint venture would increase the initial investment of about Rs requirements. Rs 200 million 800 million, once start-up costs were taken into account.

9 November 1987, Government of India Project Approval Board approved PepsiCo second proposal, to enter the country. The package, which was approved showed significant differences, however, from the one that Pepsi and its local partners had proposed more than a year earlier. Pepsi estimated that the implied changes in the project scope, the joint venture would increase the initial investment of about Rs requirements. Rs 200 million 800 million, once start-up costs were taken into account.
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Pankaj Ghemawat
Source: Harvard Business School
23 pages.
Release Date: 15, May 1993. Prod #: 793060-PDF-ENG
PEPSI: The Indian challenge HBR case solution