PepsiCo CEO Ramon Laguarta Meets PM Modi in India, Highlighting Future Growth Potential
PepsiCo’s global chairman and CEO, Ramon Laguarta, held a significant meeting with Indian Prime Minister Narendra Modi in New Delhi on Tuesday evening. This encounter is notable as it marks the first time Modi has engaged with a leading U.S. CEO in India amidst ongoing trade tensions and recent changes to Goods and Services Tax (GST) regulations. Accompanied by PepsiCo’s entire board, Laguarta’s visit underscores the company’s strategic focus on India, which is seen as a vital market for future growth.
PepsiCo’s Board Visit to India
This visit is particularly remarkable as it is the first occasion in over a decade that PepsiCo has brought its full global board to India. The board’s presence is part of a three-day quarterly executive committee meeting, which rotates among various global locations. The itinerary includes one day in New Delhi and two days in Hyderabad, where PepsiCo’s Global Capability Center (GCC) is situated. This strategic gathering highlights the importance of India in PepsiCo’s global operations. An official from PepsiCo, with two decades of experience in Asia, emphasized that the frequency of high-profile visits to India reflects the country’s growing significance for the company, stating, “This is more than symbolism.”
India’s Market Potential
PepsiCo views India as one of its 13 core global markets, anticipating that it will contribute significantly to the company’s future growth. The company expects India to account for over 85% of its growth due to the country’s relatively low soft drink penetration and a rapidly expanding snacks market. In its recent financial report, PepsiCo noted a 4% revenue growth in its international convenience foods segment for the April to June 2025 quarter, attributing this success to strong performance in markets like India. This positive outlook underscores the strategic importance of the Indian market for PepsiCo’s long-term plans.
Trade Tensions and GST Changes
The meeting between Laguarta and Modi comes at a time of heightened trade tensions between India and the United States. Speculation arose that the meeting might have been canceled due to these tensions, which have led to postponed discussions with other finance and Wall Street leaders. Recently, the GST Council increased taxes on sugary beverages from 28% to 40%, affecting both low-sugar and fruit-based drinks. Despite these changes, the 12% compensation cess is not expected to significantly impact consumer prices. Concurrently, trade talks between India and the U.S. were held in New Delhi, led by U.S. Trade Representative for South Asia Brendan Lynch, as both nations seek to navigate their economic relationship.
PepsiCo’s Financial Performance in India
PepsiCo India has reported impressive financial results, with revenue reaching ₹8,877 crore and a profit after tax of ₹883.4 crore for the year ending December 31, 2024. However, the company noted that these figures are not directly comparable to the previous year due to a change in its reporting system from a financial year to a calendar year. Despite this growth, PepsiCo’s beverage segment experienced a decline in the 12 weeks leading up to June 14, primarily attributed to early and heavy rains that offset a 1% volume growth in the international business. This mixed performance illustrates the challenges and opportunities that PepsiCo faces in the dynamic Indian market.
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