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CavinKare goes for major business reorganisation, targets Rs 5,000 crore in 3 years

CavinKare 2.0 to focus on innovation, e-commerce and synergies among divisions. Company expected to launch slew of e-commerce specific brands/products.

August 31, 2021 / 01:49 PM IST
Chennai-based CavinKare's reorganisation is intended to take the FMCG enterprise to the next level with a revamped set-up of retail, e-commerce and innovation. (Representative Image)

Chennai-based CavinKare's reorganisation is intended to take the FMCG enterprise to the next level with a revamped set-up of retail, e-commerce and innovation. (Representative Image)

Chennai-based fast-moving consumer goods (FMCG) major CavinKare is going in for a major reorganisation of business operations.

Styled CavinKare 2.0, the revamp is intended to take the FMCG enterprise to the next level in the emerging environment.

Promoter CK Ranganathan's son and daughter have now been assigned elevated roles in the group. The revamped set-up will lay much store by retail, e-commerce and innovation.

“Since the company has grown to a size, we will like to bring in a far more growth-oriented structure that brings in sharp focus for CavinKare 2.0,” Ranganathan said.

Notably, CavinKare's revenue for FY2020-21 was Rs 1,700 crore.

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What does CavinKare 2.0 envisage? 

It will focus on innovation, e-commerce and synergies among multiple divisions. 

“At a time when the market is clearly demanding and with e-commerce taking over traditional trade, the future of competition is going to be different. We have to adapt ourselves to effectively compete in the market. I think it is time for the next generation to drive the growth in the company,” the founder-chairman said during a virtual meeting.

“This is CavinKare 2.0 to take on modern trade,” he said.

The consolidated FMCG vertical will be led by Venkatesh Vijayaraghavan, who will take charge as the group CEO. The e-commerce section will also come under him.

CavinKare has two verticals in e-commerce - start-up and mature e-commerce. The retail segment will be led by the promoter's son Manuranjith Ranganathan (Director, Retail), post his stint with CK Bakery.

Manuranjith, who established the bakery chain CK Bakery, plans to open more such bakeries across South India.  CK Ranganathan himself will focus on innovation.

Manuranjith will also head the growth of animal hospital SANCHU, which is under the retail division. He will also lead the dairy segment. Under the salons vertical, retail will be led by Manuranjith and products by Venkatesh Vijayaraghavan.

Venkatesh will also lead the digital practices of the company. “We believe that the new structure will bring in phenomenal business. This structure will make us over a Rs 5,000 crore company in three years,” Ranganathan said. His daughter Amudhavalli Ranganathan will be Director, New Initiatives.

She will now get into the mainstream business. Hitherto, she has been in the education space. CavinKare is expected to see a slew of launches in e-commerce specific brands/products with her elevation.

The FMCG company is present in a range of fields — personal care, professional care, dairy, food and snacks, beverages, salon products, etc. It also runs two animal hospitals.
KT Jagannathan is a senior journalist based in Chennai
first published: Aug 31, 2021 01:49 pm
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