Packaged consumer goods company—Emami Ltd on Thursday announced a slew of changes ushering the next generation to take charge of the 48-year-year-old company started by two chartered accountant friends.
Effective 1st April, 2022, Harsha V Agarwal (45) and Mohan Goenka (49)—sons of the company’s two co-founders—and currently whole-time directors will take over as vice chairman-and-managing director and vice chairman-and-whole time director, respectively, subject to shareholder approval, the company said in a regulatory filing. Harsha is son of RS Agarwal while Mohan is RS Goenka's son.
The decision comes in the wake of board restructuring that was part of the succession planning at the Rs 2,881 crore Kolkata-based fast moving consumer goods company that sells brands such as Navratna cooling oil, BoroPlus, Fair & Handsome, Zandu Balm and Mentho Plus.
The company’s founder RS Agarwal and RS Goenka have decided to stepped down from their current executive positions as they transition the business to the next generation while continuing to be on the board.
The board has unanimously appointed RS Goenka as non-executive chairman, while RS Agarwal has been re-designated as the chairman emeritus effective 1st April,2022. Both the Founders will not accept any emoluments from the Company for taking up their new positions.
Meanwhile, Sushil Kumar Goenka, brother of RS Goenka, has decided to step down from his current position as the managing director of Emami as part of the transition process; he has been re-appointed as whole-time director of the company effective 1st April,2022. To be sure—in financial year 2020-21 Sushil Kumar Goenka was reappointed as managing director at the maker of Fair & Handsome cream and Zandu balm a further period of five years.
Harsha V Agarwal—the younger son of RS Agarwal who co-leads the FMCG business -- is a key member of the group’s core advisory team. Harsha V Agarwal has steered the company’s investments into brands such as Zandu, Kesh King and Creme 21. Mohan Goenka—the eldest son of RS Goenka is a management graduate from Cardiff University, UK. Goenka co-leads the FMCG business; he too is a key member of the core advisory team.
“Mohan Goenka and Harsha V Agarwal, whole-time directors of Emami Ltd., have been serving the business dedicatedly for over two decades, spearheading multiple functions and growing the business successfully thereby gaining immense exposure to steer the organisation forward,” the company said in a filing to the exchanges.
Mohan Goenka and Harsha V Agarwal have been in the forefront of running and growing the organisation for over two decades and their ascension today is the formal recognition of their contribution by our esteemed Board, said RS Agarwal and RS Goenka, the company’s founders.
Harsha has been appointed for a period of five years, while Mohan Goenka’s appointment is for the remaining period of his tenure i.e. up to 14 January, 2026.
India’s fast moving consumer goods market is fast evolving, facing challenges from emerging direct-to-consumer brands, a shift in trade channels as well as large companies such as Hindustan Unilever stepping up their appetite for investments.
On Thursday—the company also reported its December quarter earnings. The company reported a 5% jump in December quarter profit at Rs 220 crore; revenues were up 4% year-on-year to reach Rs 972 crore.
Emami Ltd. was founded in 1974 and started manufacturing cosmetic products as well as Ayurvedic medicines under the brand name of Emami in 1974 from a small office in Kolkata’s business district of Burra Bazar.
Subsequently, brands such as BoroPlus antiseptic cream and Navratna cool oil were launched in the 80s and 90s competing with heavyweights such as Hindustan Unilever. In 2008, it acquired Zandu Pharmaceuticals Works Ltd. In June, 2015, Emami Limited acquired the hair and scalp care business of ‘Kesh King’ for Rs 1,684 crore. Emami Group’s interest span fast moving consumer goods, real estate, paper, edible oil, biodiesel, hospitals, real estate and retail, among others.
