PepsiCo CEO Ramon Laguarta meets PM Modi, reaffirms commitment to India, discuss strategy for future growth amid India-US trade tensions

For the 12 months ending December 31, 2024, PepsiCo India reported a revenue of Rs. 8,877 crore and a profit after tax (PAT) of Rs. 883.4 crore.

PepsiCo’s Global CEO, Ramon Laguarta, met Prime Minister Narendra Modi on Tuesday, just a day before the Prime Minister’s birthday. This was the first time PepsiCo’s current CEO met PM Modi in India, making the meeting particularly noteworthy amid the ongoing India-US trade tensions. Laguarta was joined by PepsiCo’s entire global board, representing the USD 91.8 billion company behind brands like Pepsi, Lays, Kurkure, Mountain Dew, 7 Up, Slice, and Aquafina. This is the first time in at least ten years that PepsiCo has brought its full global board to India.

India is considered one of PepsiCo’s 13 core global markets. The company expects India to contribute more than 85 per cent of its future growth, thanks to the country’s low soft drink penetration and a rapidly expanding snacks market.

PepsiCo shared on LinkedIn that CEO Ramon Laguarta met PM Modi and discussed the company’s long-term commitment to India. They also talked about expanding manufacturing, sustainability, innovation, and community development in the country. India is one of PepsiCo’s fastest-growing markets, making this visit particularly significant.

Why was this meeting important?

The meeting between PepsiCo’s CEO and PM Modi comes at a crucial time. Recently, GST on aerated beverages in India was increased from 28% to 40%, effective September 22. These drinks are now classified as “sin goods.” Sales of beverages have already been slow this year, partly because of a cooler summer.

Currently, aerated drinks are taxed at 28 per cent GST, along with an additional 12% compensation cess, bringing the total tax to 40 per cent, which is the new official rate.

India: A Key Market for PepsiCo

PepsiCo, a major company in the FMCG sector, makes snacks and beverages and is valued at around USD 92 billion. The company considers India, along with China and the Middle East, as a very important market.

Pepsico’s India strategy

PepsiCo has identified 13 key markets that will drive its growth, and India is one of them. Over the next five to seven years, these markets are expected to play a major role in the company’s expansion. Reports also say that PepsiCo’s board will hold a strategy meeting in India. In addition, the team will visit the company’s Global Capability Center in Hyderabad.

PepsiCo India revenue performance

For the 12 months ending December 31, 2024, PepsiCo India reported a revenue of Rs. 8,877 crore and a profit after tax (PAT) of Rs. 883.4 crore.

In the June quarter, the company said its international sales of convenience foods grew by 4 per cent, helped by strong performance in markets like India.