HYDERABAD: PepsiCo is expanding its corporate footprint in Hyderabad with a five-year lease of 91,314 sq ft of Grade-A office space in Kokapet, adding another major multinational to the rapidly developing western Hyderabad business corridor.
PepsiCo India Capability Center LLP has leased space across the sixth and seventh floors of Laxmi Infobahn Tower 4 in Kokapet. According to property documents accessed through Propstack, the lease carries an initial monthly rent of ₹52.96 lakh, or approximately ₹58 per sq ft per month. The agreement includes a 5% annual escalation and has an estimated total rental value of nearly ₹35 crore over five years.
The lease commenced on March 13, 2026, meaning the latest disclosure relates to a registered office transaction that is already in effect rather than a future plan. PepsiCo has also reportedly paid a ₹4.76 crore security deposit. The landlord is identified as GAR & Son Builders LLP.
PepsiCo’s Hyderabad GCC Expands Its Office Footprint
The transaction is significant because the tenant is PepsiCo India Capability Center LLP, placing the new office space within the company’s Global Capability Centre ecosystem.
Global Capability Centres, or GCCs, increasingly handle specialised functions for multinational companies, including technology, finance, analytics, business operations and other enterprise services. PepsiCo’s Hyderabad capability-centre operations form part of the company’s broader India operations supporting global and regional businesses.
The latest lease therefore represents more than a conventional regional office expansion. A requirement for nearly 1 lakh sq ft indicates the scale at which global enterprises are establishing and expanding their operations in Hyderabad.
How Much Is PepsiCo Paying for the Kokapet Office?
| Detail | Information |
|---|---|
| Company | PepsiCo India Capability Center LLP |
| Location | Laxmi Infobahn Tower 4, Kokapet, Hyderabad |
| Office area | 91,314 sq ft |
| Floors | Sixth and seventh floors |
| Lease term | 5 years |
| Starting rent | ₹52.96 lakh per month |
| Rent rate | ₹58 per sq ft per month |
| Annual escalation | 5% |
| Security deposit | ₹4.76 crore |
| Estimated total rent | Nearly ₹35 crore |
| Lease commencement | March 13, 2026 |
| Landlord | GAR & Son Builders LLP |
At the starting rent of ₹52.96 lakh a month, the initial annual rent works out to approximately ₹6.36 crore, before taking the 5% annual escalation into account. The estimated five-year rental value of around ₹35 crore reflects the higher payments in subsequent years under the escalation clause.
Why Kokapet Is Attracting Global Companies
PepsiCo’s transaction adds to Kokapet’s emergence as an important commercial location in western Hyderabad. The area sits close to the established Financial District, Gachibowli and Nanakramguda office clusters and is increasingly developing as an extension of Hyderabad’s wider technology and corporate corridor.
The availability of newer Grade-A office developments, large floor plates and proximity to established employment hubs has made the western corridor increasingly attractive to large enterprises.
For GCC operators, the location also provides access to Hyderabad’s established technology and professional talent pool while allowing companies to take sizeable office footprints in newer commercial developments.
Hyderabad’s Large Office Leasing Market Gains Momentum
The PepsiCo deal comes amid strong demand for large-format office space in Hyderabad.
Market data cited in recent reports shows that Hyderabad recorded approximately 4.9 million sq ft of large-format office leasing during the first half of 2026, up from about 3 million sq ft during H1 2025. Large transactions increased their share of Hyderabad’s overall office leasing from around 51% to 65% during the period.
PepsiCo’s 91,314 sq ft transaction is slightly below the 100,000 sq ft threshold generally used for categorising large office transactions in the market data. However, the deal reflects the same broader trend of multinational companies taking substantial office footprints for GCCs and other enterprise operations.
GCCs Are Changing Hyderabad’s Office Market
The expansion of GCCs has become an important driver of Hyderabad’s commercial real estate market. Instead of relying primarily on small offices or traditional back-office facilities, multinational companies are increasingly establishing large, specialised teams in India.
These operations can include technology, finance, data analytics, digital operations, procurement, business transformation and other global functions.
As these centres expand, their impact can extend beyond office buildings. Larger corporate workforces can generate additional demand for housing, hotels, restaurants, transportation, retail, facility management and other services around major employment clusters.
What PepsiCo’s Lease Means for Kokapet
The PepsiCo transaction strengthens Kokapet’s credentials as a destination for large multinational occupiers.
The key signal is not simply the 91,314 sq ft size of the transaction, but the profile of the tenant and the five-year commitment. Large multinational companies typically require Grade-A buildings with reliable infrastructure, security, connectivity, employee amenities and the ability to support sizeable operations.
The deal also provides a useful rental benchmark for the Kokapet office market, with the initial rent reported at ₹58 per sq ft per month. However, the rate should not be treated as a standard market rate for all properties in Kokapet, as actual rents vary depending on building specifications, floor efficiency, fit-outs, parking and lease terms.
Hyderabad Continues to Strengthen Its GCC Position
PepsiCo’s latest office commitment adds to a growing list of multinational companies expanding their capability-centre operations in Hyderabad.
Recent large office transactions involving global financial institutions and other multinational enterprises have further highlighted the city’s ability to attract companies looking for sizeable Grade-A office space.
For Hyderabad, the PepsiCo lease is therefore another indication that the city’s commercial growth is increasingly being driven by global operations and capability centres, rather than only traditional IT services.
With Kokapet developing alongside Financial District and Gachibowli, the western Hyderabad corridor is emerging as one of the city’s most important destinations for large corporate occupiers.
The PepsiCo deal adds another major global name to that expanding ecosystem, with nearly 1 lakh sq ft of new office capacity committed to its Hyderabad capability-centre operations.
