PepsiCo’s global chairman and CEO Ramon Laguarta met Prime Minister Narendra Modi on Tuesday, marking the first high-profile engagement between the Indian premier and the head of a major US multinational in recent months. The meeting came against the backdrop of heightened trade frictions between Washington and New Delhi and a looming GST tax hike on aerated drinks.
The visit is significant as PepsiCo has flown down its entire board to India for the first time in a decade. The senior leadership team is in the country for a three-day tour, holding its quarterly executive committee meeting across Delhi and Hyderabad, where the company’s Global Capability Center (GCC) is headquartered.
“This is more than symbolism. Two high-profile trips by the global CEO and senior executives within five months underscore India’s strategic importance to PepsiCo,” said a company official familiar with the region.
India is among PepsiCo’s 13 core global anchor markets, expected to contribute a major share of future growth given the country’s relatively low penetration of packaged soft drinks and a booming snacks sector. In its April–June 2025 quarter, the company reported 4% revenue growth in its international convenience foods business, with India cited as a key driver.
Speculation had swirled earlier in the week that the Modi-Laguarta meeting might be called off due to “bad optics” amid tense trade negotiations. However, the engagement went ahead as India and the US held parallel talks in Delhi, led by US Trade Representative Brendan Lynch, to work towards a trade agreement.
The visit coincides with a steep GST hike on sugary drinks. From September 22, all aerated beverages—regular, low-sugar, or fruit-based—will attract a 28% tax plus a 12% compensation cess, effectively taking the levy to 40% under the ‘sin tax’ category. Industry players had lobbied for differentiated slabs based on sugar content, but the move was rejected.
For the year ending December 2024, PepsiCo India reported revenue of ₹8,877 crore and profit after tax of ₹883.4 crore, though the beverages arm saw a dip in performance in mid-2025 due to early monsoons.
With India now firmly on PepsiCo’s global radar, the company is betting on expanding both its beverages and snacking portfolios to ride the country’s consumption wave—despite regulatory headwinds and geopolitical uncertainty.