HYDERABAD | 22 August 2026: PepsiCo has expanded its Hyderabad footprint with a 91,314 sq ft lease at Laxmi Infobahn Tower 4 in Kokapet, adding further capacity to its India Capability Center. According to property documents accessed by Propstack, PepsiCo India Capability Center LLP has leased the sixth and seventh floors of the Grade-A office building for a five-year term. The lease commenced on 13 March 2026, with an initial monthly rent of approximately ₹52.96 lakh, or ₹58 per sq ft. The total rental commitment is estimated at around ₹35 crore over the five-year period. The agreement also includes a 5% annual rent escalation and a ₹4.76 crore security deposit.

KEY HIGHLIGHTS

  • 91,314 Sq Ft Expansion: PepsiCo India Capability Center has leased 91,314 sq ft of Grade-A office space across the sixth and seventh floors of Laxmi Infobahn Tower 4 in Kokapet.
  • ₹35 Crore Lease Commitment: The five-year agreement carries an estimated total rental value of around ₹35 crore, with an initial monthly rent of approximately ₹52.96 lakh.
  • Five-Year Term: The lease commenced on 13 March 2026 and includes a 5% annual escalation in rent.
  • Growing Kokapet Presence: The transaction adds to the growing concentration of large corporate and capability-centre occupiers in Hyderabad’s western corridor.

PepsiCo, headquartered in New York, is a global food and beverage company with a portfolio spanning brands including Pepsi-Cola, Lay’s, Doritos, Gatorade and Quaker. The company operates across more than 200 countries and territories. However, operating a modern fast-moving consumer goods (FMCG) empire at this scale requires vastly more than manufacturing logistics; it demands continuous algorithmic forecasting, automated financial governance, and real-time consumer data analytics.

PepsiCo’s India Capability Center is part of the company’s broader global capability network. It operates as the critical digital backbone for these international workflows. Initially established to streamline global business services, the Hyderabad-based hub has aggressively ascended the capability value chain. Today, it houses cross-functional squads tasked with executing high-value enterprise functions across supply chain digitization, advanced financial services, and human resources tech, directly supporting the parent company’s worldwide agility and market responsiveness.

The latest office expansion adds significant physical capacity to its Hyderabad operations and comes amid continued demand for Grade-A office space from global enterprises and GCCs in the city.

HYDERABAD’S GCC-LED OFFICE MARKET

The PepsiCo transaction comes against the backdrop of strong office leasing activity in Hyderabad during the first half of 2026. The city recorded 7.5 million sq ft of office transactions in H1 2026, a 29% increase year-on-year and its strongest first-half leasing performance on record, according to Knight Frank. Global Capability Centres accounted for 45% of total office leasing, absorbing approximately 3.4 million sq ft during the period.

Grade-A properties accounted for 95% of Hyderabad’s total leasing activity during the period, reflecting continued occupier preference for high-quality office infrastructure. The city’s overall office vacancy also declined to 11.5%, despite the addition of approximately 3 million sq ft of new supply.

The expansion of PepsiCo’s capability-centre footprint therefore reflects two concurrent trends: the continued scaling of global enterprise operations in India and the sustained demand for quality office infrastructure in Hyderabad.

Industry Insights

Proofpoint’s expansion highlights several broader shifts in India’s capability-centre ecosystem:

  1. GCCs Are Expanding Beyond Traditional Technology Sectors: PepsiCo’s sizeable capability-centre footprint highlights how global consumer companies are increasingly building technology, analytics and business capabilities in India alongside their core operations. GCC leasing accounted for 45% of Grade-A office leasing across India’s top seven cities in H1 2026, underscoring the broader scale of this shift.
  2. Scale Is Following Capability Mandates: A 91,000+ sq ft commitment indicates that GCC expansion is increasingly about building sustainable operating capacity, rather than small satellite teams. As global enterprises consolidate and scale higher-value functions in India, physical footprint is increasingly following the depth and breadth of the mandate.
  3. Hyderabad Continues to Attract Enterprise-Scale GCCs: Hyderabad accounted for 48% of its H1 2026 gross office absorption from GCCs, demonstrating the city’s continued relevance for global capability expansion.
  4. The GCC–Real Estate Link Is Becoming Strategic: Large GCC transactions are increasingly influencing where Grade-A commercial infrastructure is developed and how emerging business districts evolve. The PepsiCo lease adds to the growing concentration of enterprise capability demand in Hyderabad’s newer office corridors.

STRATEGIC OUTLOOK

PepsiCo’s expansion reinforces Hyderabad’s growing role as a strategic location for global capability operations. As enterprises continue to scale technology, analytics and business services from India, investments of this scale point to sustained demand for Grade-A infrastructure and specialised talent. The Kokapet lease adds to the city’s evolving capability landscape and underscores the continued confidence of global enterprises in Hyderabad as a long-term operating hub.

Curated by SSF Global

Tracking the shifts shaping GCCs, enterprise ecosystems, and the future of global business.

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SSF Global is a Global Community for Enterprise Function Leaders and serves as a research & advisory platform focused on Global Business Services (GBS), Global Capability Centres (GCCs), and the evolution of enterprise innovation in India and beyond. We track, publish, and partner in narratives that shape how capability centres transform into hubs of trust, intelligence, and sustainable growth. We also evaluate, assess and benchmark the GCCs for their performance, maturity and other parameters using our proprietary tools built from the knowledge gained from direct interaction with our members (GCCs & GBS).