In a series of posts on Twitter, the businesswoman referred to her upbringing in India and said she "never imagined" she'd have the opportunity to lead a company like PepsiCo.
Mrs Nooyi will continue as chairman of the board until early 2019.
Longtime PepsiCo CEO Indra Nooyi will step down as the top executive and the world's second-largest food and beverage company.
Laguarta will take over on October 3 and will also join the board, the company said in a statement.More news: Virus hits contract chipmaker TSMC's operations - Security
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" We've made a more meaningful impact in people's lives than I ever dreamed possible".
Ramon Laguarta, the future CEO, has spent 22 years at the company, and served as the President of PepsiCo.
Nooyi was named as Fortune's second most powerful woman in business previous year, coming after chairman and CEO of General Motors, Mary Barra.
"As CEO, she grew revenue more than 80%, outperforming our peers and adding a new billion-dollar brand nearly every other year". "She has delivered strong and consistent financial performance, managing with an eye toward not only the short-run, but the long-run as well". Dividends per share almost tripled from $1.16 in 2006 to $3.17 in 2017 and a compound annual growth rate of almost 10%, according to a PepsiCo statement. According to PepsiCo's Presiding Director Ian Cook, PepsiCo shareholders have benefited during Nooyi's tenure. Dividends per share almost tripled from $1.16 in 2006 to $3.17 in 2017, a compound annual growth rate of almost 10%. "PepsiCo's best days are still ahead of it", added Nooyi.
"Her leadership and vision propelled our performance, transformed our company and embedded sustainability into everything we do", PepsiCo said.