Emami Ltd. announced a round of new changes on Thursday, ushering in the next generation to lead the 48-year-old packaged consumer goods company founded by two friends who happened to be chartered accountants.
Harsha V Agarwal (45) and Mohan Goenka (49), sons of the two co-founders and current whole-time directors at the company, will take over as vice chairman and managing director and vice chairman and whole-time director, respectively, beginning April 1, 2022, subject to shareholder approval, according to Emami.
Harsha is the son of RS Agarwal, while Mohan is RS Goenka’s son.
The decision follows a board restructuring as part of the company’s succession planning. Navratna cooling oil, BoroPlus, Zandu Balm, Mentho Plus, and Fair & Handsome are among the brands sold by the 2,881 crore Kolkata-based fast moving consumer goods company.
As they hand over the business to the next generation, founders Agarwal and Goenka have opted to stand down from their executive roles. They will continue on the board of directors of the corporation.
RS Goenka has been unanimously elected as non-executive chairman, and RS Agarwal has been re-designated as chairman emeritus, with effect from April 1. For their new jobs, neither of the founders will accept any compensation from the company.
Meanwhile, as part of the transition, Sushil Kumar Goenka, RS Goenka’s brother, has decided to step down as managing director; he has been re-appointed as a full-time director of the firm.
Sushil Kumar Goenka was reappointed as managing director of the company for a five-year term in 2020-21.
Harsha V Agarwal, the group’s core advisory team, is the younger son of RS Agarwal, who co-leads the FMCG business. He has handled the company’s investments in Zandu, Kesh King, and Creme 21 brands. Mohan Goenka, RS Goenka’s eldest son, is a management graduate of Cardiff University in the United Kingdom. Goenka is a significant member of the core advisory team and co-leads the FMCG business.
In a joint statement, the founders said, “Mohan Goenka and Harsha V Agarwal have been at the forefront of running and growing the organisation for over two decades, and their elevation today is the formal recognition of their effort by our respected board.”
“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 stated in a filing to the exchanges.
Harsha has been appointed for a five-year term, while Mohan Goenka has been appointed for the rest of his term, which runs through January 14, 2026.
India’s fast-moving consumer products sector is rapidly changing, with rising direct-to-consumer brands, a shift in trade channels, and huge firms like Hindustan Unilever increasing their desire for investment all posing issues.
The business also released its December quarter earnings on Thursday. Emami’s December quarter profit increased 5% year over year to 220 crore, while revenues increased 4% to 972 crore. The company began manufacturing cosmetics and Ayurvedic medicines under the Emami brand name in a modest office of Kolkata’s business district of Burra Bazar in 1974.