Amid the ongoing trade impasse between India and the United States, Pepsico Global Chief Executive Officer Ramon Laguarta met Prime Minister Narendra Modi on Tuesday, according to a report by ET
According to the ET report, the CEO of $91 billion global Food and Beverage giant met the Indian PM just a day before his birthday. The meeting holds particular importance in the face of the ongoing trade impasse between India-US. This is the first time that PepsiCo’s current CEO is meeting PM Modi in India.
Pepsico’s India strategy
Pepsico has identified India as one of its 13 core global key markets. The company expects that these 13 key markets will contribute more than 85 per cent to its future growth. The company sees a lot of potential for business growth in the Indian market.
The global leadership for the company also comes at a time when its beverages business witnessed a decline in most of the June quarter. The company said that it is due to early and sustained rains. In the international market, the company reported 1 per cent volume gains in the international beverage business during the same period.
This is the second time in a short period of five months that two high-profile Pepsico leadership trips have come to India, showing India’s strategic importance increasing in the global geopolitical tensions
The higher GST rates in India are another key concern. In the core Indian markets, the increase in GST on sugary aerated drinks will be implemented from September 22.
Pepsico revenue performance
For the 12-month period till December 31, 2024, PepsiCo India reported revenue of Rs 8,877 crore and PAT of Rs 883.4 crore. At the end of the June quarter, the company stated that international sales of its convenience foods business grew 4% in revenue growth, aided by “good performance in markets such as India.