Godrej Consumer Products India CEO Sunil Kataria to leave, says management

Sunil Kataria, the chief executive officer of India and SAARC business at Godrej Consumer Products (GCPL), has decided to leave, the company’s management informed at a post-earnings investor call on February 8.

Kataria had joined GCPL in 2011 and is said to have played a critical role in the transformation of the company.

“After 11 high impact years, Sunil Kataria, CEO of our India and SAARC business has decided to pursue an external opportunity. I will directly run the business in both the regions in addition to my responsibility as MD and global CEO,” said Sudhir Sitapati during the call.

Kataria was last year elected as the chairman of the Indian Society of Advertisers (ISA) and has worked across FMCG and the consumer service industry in sales, marketing and business roles. In a previous stint, he has worked with FMCG major Marico for 11 years. At GCPL, he is credited with leading the merger of the sales and marketing organisations of GCPL and the erstwhile Godrej Sara Lee.

Kataria’s resignation comes within months of Sitapati’s taking over as global MD and CEO. Sitapati, who had served 22 years at FMCG behemoth Hindustan Unilever, was appointed as CEO and MD in May last year and joined the company on October 18.

GCPL reported a 5 percent year-on-year (YoY) jump in its net profit to Rs 527.60 crore in the third quarter ended December as compared to Rs 503 crore reported in the year-ago period. The company’s revenue from operations jumped 8 percent YoY to Rs 3,303 crore in Q3 as opposed to 3,055 crore in the corresponding period last year.

The company said its performance during the quarter was “mixed” as its volumes remained flat on account of sluggish consumption.

“While overall sales grew by 8 percent, and we remain on track to achieve double-digit sales growth for the full year, it was driven entirely by price-led growth. We believe that with the relatively non-discretionary, mass pricing of our portfolio and very good performance on market shares, volume growth will return in the medium term,” said Sitapti.

“On the other hand, while our overall EBITDA de-grew by 2 percent and PAT declined by 1 percent, the quality of profits has improved. We have witnessed a sequential expansion of consolidated gross margins of 70 bps and higher advertisement and publicity spends of 90 bps,” he added.

The company saw steady sales growth in the home care and personal care categories, of 3 percent and 12 percent, respectively. While region-wise, India grew at 8 percent and Africa, USA and Middle East business grew at 13 percent in Indian rupee terms and 12 percent in constant currency terms. GCPL’s Indonesia business saw flat growth in Indian rupee terms, and declined by 2 percent in constant currency terms during the quarter.