Indra Nooyi steps down: PepsiCo calls her 'a pioneer'; under her helm company's revenues grew by more than 80%


New Delhi: PepsiCo introduced on Monday that its CEO Indra Nooyi will step down as its CEO after heading the world’s second-largest meals and beverage large for 12 years.

Born in Chennai, Nooyi has efficiently modified the face of beverage main Pepsico together with her agenda of “efficiency with function” by providing extra nutritious merchandise.

Throughout her 12-year stint as CEO, PepsiCo noticed its income develop by greater than 80 % and added a brand new billion-dollar model virtually each different yr.

Nooyi (62) invested in the way forward for the corporate and through her tenure Pepsico’s spendings on R&D virtually bought trebled.

She centered on delivering sustainable long-term progress whereas leaving a optimistic imprint on society and the setting. This included remodeling PepsiCo’s portfolio and providing more healthy choices whereas making meals system extra sustainable.

Lengthy stint at Pepsico

Nooyi, a graduate from Madras Christian School and MBA from IIM Calcutta, who had been on the helm of affairs of $63.5 billion Pepsico for nearly 12 years, oversaw quite a lot of key restructurings throughout her 24 years’ tenure at New York-headquartered meals and beverage large. She joined PepsiCo in 1994 and had an instantaneous affect on the corporate’s strategic course. She was instrumental in PepsiCo spinning off its Pizza Hut, KFC and Taco Bell eating places for $4.5 billion.

Nooyi additionally performed a key position in PepsiCo’s acquisition of Tropicana and Quaker Oats. In addition to, below Nooyi’s tenure, PepsiCo centered on reaching out to the rising markets and quickly increasing center lessons there. Issuing a press release, PepsiCo mentioned: “Underneath Nooyi’s management, our income has grown by greater than 80 % and we now have added a brand new billion-dollar model virtually each different yr.”

File photograph of Indra Nooyi. AFP

Furthermore, throughout her tenure, PepsiCo “developed new design and eCommerce capabilities, a enterprise which generated $1 billion in annual retail gross sales final yr”.

Terming her as “really a pioneer” Pepsico mentioned she was liable for spearheading its ‘efficiency with function’ imaginative and prescient. This was to supply “extra nutritious merchandise, restrict environmental impression and assist individuals and the communities”. PepsiCo is presently globally the second-largest meals and beverage firm and her admirers credit score it to Nooyi.

Throughout her stint, PepsiCo Inc, together with its companions, had on November 2013 introduced to speculate $5.5 billion (Rs 33,000 crore) to double its manufacturing capability in India by 2020.

“I’m particularly pleased with the good work we now have finished in India to rework our portfolio to incorporate extra nutritious merchandise, working with and supporting 1000’s of Indian farmers, and offering an inclusive office by which our associates in India can convey their complete selves to work each day. That won’t change,” mentioned Nooyi in her assertion.

Ramon Laguarta to interchange Nooyi 

PepsiCo Inc has appointed Ramon Laguarta to take over as chief govt from Nooyi, handing the reins to a veteran who led the corporate’s fast-growing rising markets enterprise. Laguarta, who begins on three October, can be tasked with managing the corporate’s response as client tastes transfer away from sugary drinks.

Nooyi, 62, is stepping down after 24 years at PepsiCo, the place she held quite a lot of roles, together with her most up-to-date 12 years as CEO. Her departure additionally leaves just one lady of coloration amongst Fortune 500 CEOs.

Laguarta can be PepsiCo’s sixth CEO in its 53-year historical past. Nooyi described Laguarta because the ‘proper individual’ to assist construct on Pepsico’s ‘sturdy place and success’.

A 22-year veteran of PepsiCo, Laguarta oversaw international operations, company technique, public coverage and authorities affairs in his position as president.

The Spaniard beforehand headed the corporate’s Europe Sub-Saharan Africa (ESSA) division – a unit PepsiCo characterised as “some of the complicated enterprise divisions within the firm,” on account of its mixture of each developed and rising markets.

Laguarta, 54, was named the president of the corporate in September final yr and was tipped to succeed Nooyi. He additionally previously led PepsiCo’s Jap European operations.

“With a deep understanding of PepsiCo’s worldwide operations, and a broader understanding of the overall firm portfolio in his position as president, we imagine that Laguarta is well-placed to proceed executing on PepsiCo’s present technique,” Cowen & Co analysts mentioned.

PepsiCo’s shares had been up 1.6 % in morning buying and selling on Monday, touching a seven-month excessive of $118.21 earlier within the session.

Nooyi is the third feminine CEO to go away a Fortune 500 firm within the final one yr after Denise Morrison give up Campbell Soup in Might and Irene Rosenfeld stepped down as the pinnacle of Oreo-cookie maker Mondelez Worldwide Inc in August 2017.

That leaves solely 23 feminine CEOs at Fortune 500 firms, representing lower than 5 % of the overall, in keeping with the Fortune journal.

–With inputs from businesses

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