The founders of consumer goods maker Emami Ltd — RS Agarwal and RS Goenka — have decided to step down from their executive positions and appointed the next generation family members at the top as part of a succession plan.
Executive chairman RS Agarwal, 77, will become chairman-emeritus while RS Goenka, 76, will become the non-executive chairman. They will not take any emoluments from the company for taking up their new positions. The decision comes in the wake of board restructuring that was part of the succession planning of the FMCG business of the group.
Effective 1 April 2022, Harsha V Agarwal, 45, and Mohan Goenka, 49, sons of the two co-founders and currently whole-time directors at the company, will take over as vice-chairman and managing director and vice-chairman and whole-time director, respectively, subject to shareholders’ approval.
Meanwhile, Sushil Goenka, who is the younger brother of RS Goenka, will serve on the board as a whole-time director.
The succession plan at the Rs 2,881 crore Kaolkta-based FMCG major comes in the backdrop of a board restructuring. Emami sells brands such as BoroPlus, Navratna cooling oil, BoroPlus, Fair & Handsome, Zandu Balm, and Mentho Plus.
Also, the decision comes ahead of the Securities and Exchange Board of India’s (Sebi’s) April 1 deadline. The market regulator had asked the country’s top listed companies by market capitalization to bifurcate the role of chairman and managing director.
Commenting on the announcement, both the co-founders said that they are happy to announce the re-designation of Mohan Goenka and Harsha V Agarwal. They have been at the forefront of running and growing the organisation for over two decades and their ascension is the formal recognition of their contribution by the board.
Mohan Goenka and Harsha V Agarwal said: “We wish to thank our founders and the board for reposing their faith in us to have given us the responsibility of leading and steering the company forward. We both have been guided by our founders’ vision and values and the strong bond of friendship that they shared… We look forward to our leadership team’s continued support and guidance, sage counsel of our founders and the board, and the support of all our stakeholders, specially our team members in our endeavour to take Emami to greater heights with a strong sense of purpose and ambition.”
On Thursday, the company posted a 5 per cent year-on-year rise in its December quarter profit to Rs 220 crore, while revenues grew 4 per cent to Rs 972 crore.
