Godrej Consumer Products Ltd share price has been tanked close to around 6% since Tuesday morning as investors as reacted to the news of current MD and CEO, Vivek Gambhir stepping down from the post at the end of this month. The post of MD as well as 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 7 years as MD and CEO as well. The stock was trading at around Rs 632 per share on Wednesday morning. After recouping the majority of the losses, Godrej Consumer Products’ shares are now down just of 7% since the beginning of this year.
Vivek Gambhir, 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 at the Godrej Consumer Products as Chief Strategy Officer in 2009 responsible for guiding overall Group strategy, that conducting portfolio analysis, and driving special projects, Vivek Gambhir helped define the CREATE portfolio approach and the 10X10 objective for the Group. He was the key architect of GCPL’s ‘3 by 3 Strategy’ and was instrumental in driving the company’s efforts to be a leader in emerging markets, according to a recent note by the 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 around 14% downside. The consumer product space in India has witnessed slowdown even before the arrival of the coronavirus pandemic situation and that hit Godrej Consumer Products as well. Domestic business was hit together with the failure to improve margins in the international business, that has had an adverse effect on the pace of earnings growth. Over the years, the firm acquired businesses like the Darling group in Kenya, DGH Mauritius Pvt. Ltd, Cosmetica Nacional in Chile, Soft & Gentle brand that Female Deodorants, SON, amongst many others. Nisaba Godrej, currently the executive chairperson of the company, will also take on the additional role of managing director and chief executive officer (i.e. CEO) from July and onwards. Niasaba holds a Masters in Business Administration from Harvard Business School as well as an undergraduate degree from The Wharton School. Additionally Domestic benchmark indices, Sensex and Nifty were trading in the green on Wednesday as well. 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 marks.