Nooyi will remain as chairman until early next year.
PepsiCo announced on Monday that Indra Nooyi would step down as chief executive officer (CEO) in October after 12 years at the helm.
However, Nooyi will remain the Chairman of the company until early 2019.
Nooyi will be succeeded on October 3 by Ramon Laguarta, who has served as Pepsi's president since past year.
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"Growing up in India, I never imagined I'd have the opportunity to lead such an extraordinary company", Indra said. She oversaw PepsiCo during a turbulent time in the industry that has forced food giants including Coca-Cola Co., Campbell Soup Co. and Oreo maker Mondelez International Inc.to adapt to changing tastes.
She was promoted to CEO in 2006, not long before the mortgage crisis-fueled Great Recession. Net revenue growth rose from $35 billion in 2006 to $63.5 billion in 2017, a CAGR of 5.5%.
Nooyi, who was the firm's fifth chief executive in the group's 41-year history, will be succeeded by PepsiCo executive Ramon Laguarta. As of May, according to Fortune, there were just 24 female chief executives of Fortune 500 companies. Sales grew 80% during her 12-year tenure. She later attended the Yale School of Management. Before becoming CEO she led the company's expansion through acquisitions, including its 2001 purchase of Quaker Oats Co. "Day one, you have to be ready to take on the mantle of being CEO".
"We have had the privilege of knowing Nooyi for over a decade and have been very impressed with her leadership acumen and very thoughtful approach to managing PepsiCo through what has been a period of very choppy waters for broader consumer packaged goods", said Bonnie Herzog, senior analyst at Wells Fargo.
"How are we going to attract women who are more than 50 percent of all the college graduates who are getting all the top grades? It's got to be a concerted effort on the part of governments, societies, families, companies - all of us coming together".