PepsiCo appoints Indra K Nooyi as CEO

Washington, Aug 14: PepsiCo, which is facing heat on pesticide residual issue in India, today named Madvas-born woman executive, Ms Indra K Nooyi as its next Chief Executive Officer (CEO) effective from October 1, 2006.

A graduate of the Madras Christian College, Madras, Indra Nooyi migrated to the United States to pursue further studies at Yale University.

Ms Nooyi joined the 33 billion dollar global convenient foods and beverages company in 1994 and has served as President and Chief Financial Officer since 2001, when she was also named to PepsiCo's board of directors.

As the fifth CEO in PepsiCo's 41-year history, she brings vast and unique skills to the job.

According to a press release from PepsiCo, Ms Nooyi has directed the company's global strategy for over a decade and was the primary architect of PepsiCo's restructuring, including the divestiture of its restaurants into the successful YUM! Brands, Inc, the spin-off and public offering of company-owned bottling operations into anchor bottler Pepsi Bottling Group (PBG), acquiring Tropicana, and the merger with Quaker Oats that brought the vital Quaker and Gatorade businesses to PepsiCo.

Recently, she has been driving critical cross-business initiatives to enhance operations and enable PepsiCo to meet the changing needs of consumers and retailers.

Speaking on behalf of PepsiCo's board of directors, presiding director Robert E Allen said: ''We are exceedingly fortunate to have a leader of Indra's caliber, vision and experience take the helm. She has been instrumental to PepsiCo's solid direction and ongoing success and has the complete endorsement and support of the board.

''We have seen firsthand the difference that Indra has made on the business and the people, and we look forward to working even more closely with her to usher in the next generation of dramatic growth and advancement that has been a hallmark of PepsiCo since its founding,'' he said.

Commenting on her appointment, Ms Nooyi said, ''I am humbled by the opportunity to lead PepsiCo, and profoundly grateful to follow in the footsteps of Steve Reinemund, Roger Enrico, Wayne Calloway and Don Kendall.

''Steve has steered the company to a strong and enviable position, and he will be a continuing source of wisdom and perspective. I am equally fortunate to have amazing partners, not only on the board and executive team, but in the 157,000 bright, talented colleagues around the world who deliver the results every day and are as committed as I am to continue capturing every growth opportunity,'' ''Indra's record of transforming PepsiCo speaks for itself, and she has been an invaluable partner and ally throughout my time as CEO,'' said Mr Steve Reinemund.

''She not only co-authored our vision and drafted our strategic blueprint, she has a sharp talent for turning insightful ideas and plans into realities and for developing and replenishing our talent base. Having worked side-by-side with Indra for many years, I am convinced she is more than qualified and clearly ready for her new role leading PepsiCo.'' Steve Reinemund, a 22-year PepsiCo veteran, has led the corporation since 2001.

In addition, PepsiCo also announced that Ms Nooyi's current responsibilities will be divided between two PepsiCo veterans. Richard Goodman, 57, who has 12 years of service with the company and is currently CFO of PepsiCo International, will assume the position of CFO for the corporation with responsibility for Tax, Treasury, Control, Risk Management and Audit and Investor Relations.

Hugh F Johnston, 44, currently Senior Vice-President, Transformation, has been promoted to the newly created position of Executive Vice-President, Operations and will add Global Procurement and Information Technology to his responsibilities. Mr Johnston has worked at PepsiCo for 17 years.

Both executives will report to Ms Nooyi.

As CEO, Ms Nooyi's leadership team of direct reports will include the company's division chiefs -- Michael D White, PepsiCo Vice Chairman and Chairman&CEO of PepsiCo International, who is also a member of the board of directors; Albert P Carey, President and CEO of Frito-Lay North America; John C Compton, President and CEO of Quaker-Tropicana-Gatorade; Thomas Greco, President of PepsiCo Sales; and Dawn Hudson, President and CEO of Pepsi-Cola North America.

Corporate staff officers reporting to Ms Nooyi will include Richard Goodman as CFO and Hugh Johnston as EVP, Operations, along with Larry D Thompson, Senior Vice-President, Government Affairs, General Counsel and Secretary; Margaret D Moore, Senior Vice-President, Human Resources; Ron Parker, Senior Vice-President, Diversity and Inclusion; Antonio Lucio, Senior Vice-President, Chief Innovation and Health and Wellness Officer; and Tod J MacKenzie, Senior Vice-President, Communications.

In closing, Mr Reinemund said: ''It gives me great pride that this organisation continues to develop the kind of talent that enables the board to continue the unbroken tradition of selecting a strong CEO successor from within the ranks of our leadership, and provides qualified leaders to seamlessly backfill Indra's roles as well.

''I am absolutely confident that PepsiCo's future is in very capable hands, starting with Indra and deep into the organisation. I truly believe she and her team will not only sustain the achievements we have made, but will take PepsiCo to an even higher level of success. I look forward to cheering their continued accomplishments.'' PepsiCo is one of the world's largest food and beverage companies with annual revenues of 33 billion dollars. Its principal businesses include Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. Its portfolio includes 17 brands that generate 1 billion dollar or more each in annual sales.

From 2001 to 2005, PepsiCo's revenues increased by more than 9 billion dollor, net income increased by 70 per cent, earnings per share increased by 80 per cent, its annual dividend doubled and the company's market capitalisation surpassed 100 billion dollar.

During 2006, PepsiCo has continued to build on that growth record.

Last month, PepsiCo announced strong second-quarter earnings across all businesses, with a 12 per cent increase in net revenue and 15 per cent EPS growth.

In conjunction with today's announcement, PepsiCo reiterated its confidence for the year and reconfirmed its forecast for 2006 full-year earnings of at least 2.95 dollar per share.

UNI