PepsiCo’s global chairman and CEO, Ramon Laguarta, along with the company’s full global board, met Prime Minister Narendra Modi in New Delhi on Tuesday, marking a significant milestone for the $91.8 billion beverages and snacks giant. This is the first time in over a decade that PepsiCo has brought its entire global board to India, highlighting the country’s growing importance in its future strategy.
India at the Heart of PepsiCo’s Growth
According to company officials, PepsiCo expects India to account for more than 85% of its future growth, fueled by low soft drink penetration and a rapidly expanding snacks market. The visit also underlines India’s position as one of PepsiCo’s 13 core global markets.
The board’s three-day visit includes one day in Delhi and two in Hyderabad, where PepsiCo’s Global Capability Center (GCC) is headquartered. Earlier this year, Laguarta had also led a team of over two dozen senior executives to India—making this his second high-profile trip in just five months.
“This is more than symbolism. Two such visits in quick succession signal the strategic importance of India for PepsiCo,” an Asia-based PepsiCo executive told Economic Times.
Challenges Amid Optimism
The visit comes against the backdrop of rising trade tensions between India and the US, as well as new tax policies. Recently, the GST Council increased taxes on sugary drinks from 28% to 40%, extending it to low-sugar and fruit-based variants. With an additional 12% compensation cess, analysts believe the move will not directly impact consumer prices but could add pressure on beverage companies.
On the trade front, US President Donald Trump recently imposed 50% tariffs on Indian exports, citing trade deficits and India’s purchase of Russian oil. Despite this, he has expressed hope of reaching a trade agreement soon.
PepsiCo’s Performance in India
PepsiCo India reported revenue of ₹8,877 crore and profit after tax of ₹883.4 crore for the year ending December 31, 2024. The company transitioned to a calendar year reporting system, making these numbers non-comparable with previous years.
While its beverages business faced challenges due to early and heavy rains this summer, the company’s international convenience foods business reported 4% revenue growth in April–June 2025, driven by markets such as India.
Looking Ahead
Despite taxation hurdles and geopolitical challenges, PepsiCo remains bullish on India. The dual visits within five months, along with Modi’s engagement with PepsiCo’s leadership, underscore the country’s central role in the company’s future. With India projected to drive the bulk of PepsiCo’s global growth, the partnership between the multinational and the Indian market appears poised to deepen further.
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