Vivek Gambhir resigns as Godrej Consumer MD, Nisaba Godrej takes over
Photo Credit: VCCircle

Nisaba Godrej, the executive chairperson at Godrej Consumer Products Ltd (GCPL), has been appointed as the company’s managing director by its board, according to a stock-exchange filing.

Godrej will take over from current managing director and CEO Vivek Gambhir, who has resigned citing personal reasons, the company said in the filing. She has been appointed as company MD till the conclusion of her existing term in September 2022.

Gambhir, meanwhile, will continue to retain his position as a whole-time director until the end of September this year.

“Humanity is going through difficult times right now and GCPL is committed to doing whatever is necessary to serve its stakeholders and community,” Godrej said.

An alumnus of The Wharton School and Harvard Business School, Godrej also sits on the board of Godrej Agrovet and VIP Industries. She is also the chairperson of non-profit organisation Teach For India.

Shares of GCPL ended the day 0.19% up at Rs 659.35 apiece. According to VCCEdge, the data research arm of Mosaic Digital, Godrej Consumer reported consolidated net sales of Rs 9,910.8 crore and Rs 10,314.34 crore for the 2019 and 2020 financial years.

It also reported positive EBITDA (earnings before interest, tax, depreciation and amortisation) figures of Rs 2,255.33 crore and Rs 2,226.37 crore for the same period.

The company itself is one of India’s larger consumer products firms, with brands under its umbrella including Good Knight, HIT, BBlunt, and Cinthol. It has also made several acquisitions and increased its stake in existing holdings in recent years to increase its control and geographical presence.

Last month, for example, it took full control of Kenyan company Canon Chemicals Ltd by acquiring a 25% stake for a KES 1.5 billion (around $14.05 million or Rs 106.26 crore) consideration. It originally acquired a 75% stake in Canon Chemicals for an undisclosed sum in February 2016.

In September last year, it increased its stake from 90% to 95% in two Mauritius-based units - Godrej West Africa Holdings Ltd (GWAHL) and Darling Trading Company Ltd (DTCL). The Mumbai-based firm paid $13.80 million (around Rs 97.89 crore) for GWAHL, with a further $7 million (around Rs 49.65 crore) for increasing its stake in DTCL.

It has also sold divisions to meet its strategic goals. In August 2018, the company sold its UK-business to the London-based private equity firm JZ International for £34 million (about $44 million or Rs 313 crore).

At the time, Nisaba Godrej said the decision was guided by the company’s “3 by 3 approach”, which focuses on three categories—home care, hair care and personal care—in the Asia, Africa and Latin American regions.

Leave Your Comment(s)