Nooyi, 62, will step down on 3 October, 2018, after a 24-year stint with the company. Nooyi will remain as chairman until early next year.
President Ramon Laguarta was elected by the board of directors to succeed her. Laguarta was also elected to the board.
Under Nooyi's 12-year tenure as CEO, she has boosted sales of the Mountain Dew and Gatorade maker to $63.5 billion, up 80 percent from when she started.
Laguarta, a 22-year veteran of PepsiCo, oversaw global operations, corporate strategy, public policy and government affairs in his role as president.
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Headliners included Clawfinger, Dimmu Borgir , In Extremo, Judas Priest , Nightwish , Oomph as well as the Red Hot Chili Peppers . If Hollywood's not already scrambling to turn this story into a movie they've got absolute rocks in their heads, we tell you.
"Leading PepsiCo has truly been the honour of my lifetime, and I'm incredibly proud of all we have done over the past 12 years to advance the interests not only of shareholders, but all our stakeholders in the communities we serve", Indra said.
She is among the world's most prominent female business leaders and has consistently appeared on Forbes' list of the 100 most powerful women, ranking 11th in 2017.
"Guided by our philosophy of Performance with goal - delivering sustained performance while making more nutritious products, limiting our environmental footprint and lifting up all the communities we serve - we've made a more meaningful impact in people's lives than I ever dreamed possible", she said.
"Today is a day of mixed emotions for me".
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Georgia Hall poses with the trophy after winning the 2018 Women's British Open Golf Championships at Royal Lytham & St. Pornanong is trying to become the second Thai female to win a major championship after Ariya Jutanugarn in 2016.
Indian-origin Nooyi has been at the helm of the New York-based company for 12 years.
Recently, she has focused on reinvigorating sales of its marquee sodas by stepping up marketing efforts, in a bid to win market share from Coca-Cola Co. Between 2007 and 2017, revenue at Pepsico has risen about 61 per cent.
PepsiCo has delivered strong results under Nooyi's leadership.
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