What lies ahead for Zandu-maker Emami as the next generation takes over?
Founders of packaged consumer goods maker Emami Limited are making way for the next generation to take over the company, the manufacturer of products including Boroplus, Zandu balm, Navratna and Kesh King.
Harsha V. Agarwal, the son of co-founder Radhe Shyam Agarwal, has been appointed vice chairman-cum-managing director and Mohan Goenka, son of co-founder Radhe Shyam Goenka, has been designated vice chairman-cum-whole time director starting in April.
Radhey Shyam Agarwal and Radhe Shyam Goenka have stepped down from their executive roles and will now mentor the next generation as chairman emeritus and non-executive chairman, respectively.
Radhe Shyam Goenka’s brother Sushil K Goenka has also stepped down as managing director of the company.
The change of guard marks a generational shift in the history of the 48-year-old business, which competes with the likes of Hindustan Unilever Limited, Dabur India Limited and Patanjali Ayurved Limited.
The management rejig, however, does not signify any major change in the running of the company because Harsha Agarwal and Mohan Goenka have been running the business for several years, some analysts said.
One analyst said on condition of anonymity that the passing of the baton to the scions was a missed opportunity for Emami, which could have hired a professional CEO to lead the company and prepare it for the next leg of growth.
A business forged in friendship
Emami was founded in 1974 by childhood friends Radhe Shyam Agarwal and Radhe Shyam Goenka in Calcutta (now Kolkata) as a cosmetic manufacturing company. In its initial days, the company was named Kemco Chemicals and was renamed Emami after its public listing in 1995.
The company remains a family-owned and family-run cooperation to date
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