Godrej Consumer Products Limited share price has tanked close to 6% since Tuesday morning as investors reacted to the news of current MD and CEO, Vivek Gambhir stepping down from his post at the end of this month. The post of MD and CEO will be assumed by Nisaba Godrej who is currently the Executive Chairperson of Godrej Consumer Products Limited. Vivek Gambhir served the firm for 11-long years, including seven years as MD and CEO. The stock was trading at Rs 632 per share on Wednesday morning. After recouping the majority of the losses, Godrej Consumer Products’ shares are now down just 7% since the beginning of this year.
Vivek Gambhir, who was appointed as the MD and CEO of the firm in July of 2013, saw the share price surge 135% from Rs 270.58 to Rs 635 per share today. Joining Godrej Consumer Products in 2009 as Chief Strategy Officer responsible for guiding overall Group strategy, conducting portfolio analysis, and driving special projects, Vivek Gambhir helped define the CREATE portfolio approach and the 10X10 objective for the Group. He was also the key architect of GCPL’s ‘3 by 3 Strategy’ and was instrumental in driving the company’s efforts to become a leader in emerging markets, according to a recent note by brokerage firm Motilal Oswal. The brokerage firm has a NEUTRAL rating on the scrip and a target price of Rs 565 per share hints at a 14% downside.
The consumer product space in India has witnessed slowdown even before the arrival of the coronavirus pandemic and that hit Godrej Consumer Products as well. Domestic business was hit along with the failure to improve margins in the international business, which has had an adverse effect on the pace of earnings growth. Over the years, the firm acquired businesses like Darling group in Kenya, DGH Mauritius Pvt. Ltd., Cosmetica Nacional in Chile, Soft & Gentle brand – Female Deodorants, SON, among many others. Nisaba Godrej, currently the executive chairperson of the company, will take on the additional role of managing director and chief executive officer (CEO) from July onwards. Niasaba holds a Masters in Business Administration from Harvard Business School and an undergraduate degree from The Wharton School.
Domestic benchmark indices, Sensex and Nifty were trading in the green on Wednesday. Sensex was up 162 points of 0.48% at 34,119 points while the 50-stock Nifty was sitting just a tad bit below the 10,100 mark.