Varun Beverages, the Indian bottling partner of PepsiCo, has announced plans to set up a production facility for select beverages at Pathankot in the northern state of Punjab.

In a filing with Bombay Stock Exchange, the company stated that following requisite approvals it intends to set up an in-house production facility for Tropicana fruit juices, Quaker Oats milk-based beverages and Gatorade.

United News of India news agency reported that the plant is being set up with an investment of INR8bn ($122m).

According to Varun Beverages, this plant will serve as the first fully backward integrated facility in the country to produce the full range of these products at a single site.

“The setting-up of this production facility is in-line with our endeavour to strengthen our presence in fast growing categories.”

Varun Beverages chairman Ravi Jaipuria told Press Trust of India: “The juice market in India is expected to show strong double-digit growth. The setting-up of this production facility is in-line with our endeavour to strengthen our presence in fast growing categories.

“The addition of these product categories to our portfolio will result in better asset usage as the seasonality in these categories is relatively lower and will augment our return ratios and profitability metrics going forward.”

The foundation stone for this facility was laid by Punjab Chief Minister Captain Amarinder Singh. Located across 41.4 acres of land, the plant will be constructed in two phases.

Once completed, the facility will offer direct and indirect employment to nearly 2000 people. It is expected to become operational in 12 months.