Dabur India Ltd has elevated Mohit Malhotra as its new chief executive officer effective 1 April, the Mumbai-listed consumer products maker informed stock exchanges on Thursday.
Malhotra, who heads Dabur’s India business, will be co-CEO till 31 March and will replace current chief Sunil Duggal thereafter. His elevation is part of the company’s succession planning to replace Duggal, who has been at the helm of affairs at Dabur since 2002.
Duggal will continue to be a whole-time director at Dabur till 15 May this year. Thereafter, he will be a non-executive director till July next year, the company said.
Dabur also appointed Malhotra to its board of directors for a five-year term with immediate effect.
These appointments are subject to shareholders' approval and other requisite clearances.
Malhotra is a management graduate from Pune University and studied international business at the Indian Institute of Foreign Trade in Delhi. He joined Dabur in 1994. He has worked in various capacities and handled key assignments in marketing and sales.
In 2001, Malhotra was named the Dabur’s business head of the European Union. Three years later, he became head of marketing for Dabur's international business in Dubai before heading Dabur International in 2008. In his current role, Malhotra is driving Dabur’s strategy to make Ayurveda products more popular.
Dabur also announced the appointment of Ajit Mohan Sharan as an additional director for a five-year term with immediate effect. Mohan, a former chairman and managing director at Oriental Insurance Company, is an IIT-Delhi graduate and has an MBA from Louisiana State University. He is an Indian Administrative Service officer of the 1979 cadre.
Shares of Dabur India gained 2.9% to end at Rs 443.25 apiece on the BSE on Thursday. The stock has touched a high of Rs 490.70 and a low of Rs 312.45 apiece in the past 52 weeks.
The BSE’s benchmark Sensex advanced 1.9% on Thursday to close at 36,256.69.
Dabur, promoted by the Burman family, started in 1884 as an Ayurvedic medicines company. It currently operates in a range of consumer product categories such as hair care, oral care, health care, skin care, home care and food products.
Dabur counts emerging markets-focussed investment firm Arisaig Partners as an investor and was previously backed by Baring Private Equity Partners India. Arisaig owns a 1.1% stake in the company. State-run Life Insurance Corp is also an institutional investor in Dabur.
The Delhi-headquartered company has presence in about 120 countries with its overseas business accounting for nearly 30% of its revenue. It has been on an acquisition spree to strengthen its overseas business over the past few years.
It had expanded its international operations two years ago by acquiring two South African companies. The deal, pegged at 50 million rand ($3.8 million) in cash at the time of announcement, was revised lower to 42 million rand ($3.5 million) a year later.