PepsiCo wants to battle it out in the Rs 11,000-crore Indian biscuits market that is getting chock-a-block with new entrants, reported The Economic Times.

The American food and beverages maker, which launched Aliva baked crackers in 2009, will start test-marketing oats-based premium cookies under its Quaker brand next month, two officials directly involved with the development said.

PepsiCo India is among a slew of domestic and international companies rushing to the fastest-growing processed food segment in the country, growing 20 per cent a year, faster than noodles and potato chips. "The category will explode this decade," says Nikhil Sen, biscuits industry veteran and MD of Bangalore-based biscuit maker Unibic India. American major Kraft Foods is expected to kick off its India foray with biscuits some time this year.

Domestic company Marico too is reportedly planning a foray into the segment by acquiring Unibic India, a subsidiary of Unibic Australia and makers of ANZAC Oatmeal cookies and Bradman Chocolate Chip cookies. Speculation is rife that Marico, which makes Parachute hair oil and Saffola cooking oil, will buy a 51% stake in Unibic for Rs 130 crore, though neither Marico nor Unibic have confirmed the move.