Godrej Consumer CEO Sudhir Sitapati quits days after reappointment
Godrej Consumer Products Ltd (GCPL) has announced the immediate resignation of managing director and chief executive officer Sudhir Sitapati, just three days after shareholders approved
Godrej Consumer Products Ltd (GCPL) has announced the immediate resignation of managing director and chief executive officer Sudhir Sitapati, just three days after shareholders approved his reappointment for another term, in a surprise leadership shake-up. The sequence of events unfolded quickly. Both Sitapati and chief financial officer Aasif Malbari wrote to Nisaba Godrej, chairperson of Godrej Consumer, on 10 August, according to an exchange filing by the company on Tuesday. In his resignation letter filed with the exchanges, Sitapati referred to the company's performance during his tenure. Malbari, meanwhile, resigned as chief financial officer and was proposed for elevation to managing director and CEO. The company's 10-member board approved the decisions at a 10-minute meeting on Tuesday. The meeting was convened to confirm the appointments. Also Read | Marico eyes strong FY27 volume growth after best Q1 in five years The company announced the changes after market hours on Tuesday. Malbari will serve as managing director and CEO for a five-year term beginning 12 August 2026, while Vishal Kedia has been appointed interim CFO, in addition to his existing responsibilities in strategy and investor relations.
“I feel that the task I had set for myself here is done and this is the right time to move on,” Sitapati said in his letter to the management dated 10 August. The timing is striking. GCPL's board had recommended Sitapati's reappointment on 6 May, and shareholders approved it through an ordinary resolution at the company's 26th annual general meeting on 7 August. Founder and managing director of corporate governance research and proxy advisory firm InGovern, Shriram Subramanian, said that the resignation of a CEO after reappointment is a rare event in India. Also Read | HUL Q1 Preview: Volume growth in focus amid rural headwinds Leadership reset Malbari joined GCPL three years ago after stints at Hindustan Unilever Ltd and Tata Motors Ltd. Alongside his elevation, Vishal Kedia has been appointed interim chief financial officer while continuing to oversee strategy and investor relations. GCPL credited Malbari with turning around its Africa business, saying he had expanded the region's higher-margin FMCG portfolio, led by the launch of its air care category, while strengthening the legacy hair fashion business.
“The business has rapidly grown its margin-accretive FMCG portfolio, headlined by the highly successful launch of our air care category, while strengthening the legacy hair fashion business,” the company said in its statement. The Africa business's Ebitda margin has risen from 9% in FY24 to about 15% in FY26, according to the company. Kedia has been with GCPL since 2016, leading global strategy and investor relations. Before joining the Godrej Group, he worked at The Boston Consulting Group. The leadership change also comes days before a broader transition at the Godrej Group. Mint had earlier reported that Pirojsha Godrej will succeed Nadir Godrej as chairperson of the $20 billion Godrej Industries Group on 14 August, when Nadir Godrej steps down on turning 75. Also Read | FMCG companies hopeful of healthy Q1 growth despite inflationary headwinds Sitapati's legacy Sitapati took charge of GCPL on 18 October 2021 after 22 years at Hindustan Unilever. His appointment initially drew a strong market response. GCPL's shares rose more than 20% on 12 May 2021 after the company announced his appointment, when it also reported a 59% year-on-year increase in quarterly net profit.
The BriefWire