FMCG maker Emami on Thursday announced a major move to rejig its board, as founders founders RS Agarwal and RS Goenka are stepping down from their executive roles, paving the way for the next generation to take charge of the company.
Accordingly, the board elevated Harsha Vardhan Agarwal (45) and Mohan Goenka (49) as vice-chairman-cum-managing director and vice-chairman-cum-whole-time director of the company, with effect from April 1, 2022. Harsha V Agarwal is the younger son of RS Agarwal and Mohan Goenka is the eldest son of RS Goenka. Currently, both are whole-time directors.
In a stock exchange filing, Emami said RS Agarwal (77), executive chairman, and RS Goenka (76), whole-time director, have desired to step down from their current executive positions and transition the business to their next generation, while continuing on the board. Further, Sushil K Goenka has also desired to step down from his current position as the managing director of the company as part of the transition process and continue to act as whole-time director. The board of directors of the company, at its meeting held on Thursday, appointed RS Agarwal as non-executive director, designated as chairman emeritus, with effect from April 1, 2022. It appointed RS Goenka as non-executive chairman in the capacity of non-executive non-independent director, with effect from April 1. Sushil K Goenka was appointed as whole-time director of the company with effect from April 1 for the period of four years.
“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 board, therefore, found them to be deserving candidates and re-designated Mohan Goenka and Harsha V Agarwal as vice chairman-cum-whole time director and vice chairman-cum-managing director respectively, effective April 1, 2022 to steer the organisation forward, subject to shareholders’ approval,” the company said in a release.
Commenting on the announcement, founders RS Agarwal and RS Goenka said, “We are happy to announce the re-designation of Mohan Goenka and Harsha V Agarwal as vice-chairman-cum-whole-time director and vice-chairman-cum-managing director respectively. They 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… We are confident that our next generation leaders would uphold the legacy and values of Emami going forward. We wish them the very best for the future.”
Q3 consolidated net profit rises 5%
Emami on Thursday reported a 5% year-on-year rise in its consolidated net profit to Rs 219.52 crore for the third quarter this fiscal, from Rs 208.96 crore for the corresponding period last fiscal. Revenue from operations grew 4% y-o-y to Rs 971.85 crore from Rs 933.61 crore a year ago.
The quarter witnessed high inflation leading to a deceleration in consumer demand, the company said in a statement. “Domestic business grew by 3% on a year-on-year basis over a base of 16% growth in previous year, translating into a two-year CAGR of 9%. Modern trade grew by 14% and e-commerce continued its robust run growing by 75% over previous year. In Q3FY22, the salience of these new age channels has increased to 14% of domestic revenues,” it added.
The board of directors of the company approved the buyback of the company’s fully paid-up equity shares, having a face value of Rs 1 each, for an aggregate amount not exceeding Rs 162 crore.
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