Founder and executive chairman R S Agarwal (77) will become the chairman emeritus, while wholetime director R S Goenka (76) will become non-executive chairman. Mohan Goenka (49), the eldest son of R S Goenka, has been appointed as vice chairman and whole time director while Harsha V Agarwal (45), younger son of R S Agarwal, as vice chairman-cum-managing director.
Emami’s existing managing director Sushil K Goenka will step down from his current position as part of the transition process and will become a whole-time director of the company. All these changes were decided in the company’s board meeting held on Thursday and will be effective from April, Emami said in a release.
The company said both the founders will not accept any emoluments from the company in their new positions. It said both the new generation scions have been in the business for over two decades and have grown the business, whereby the board found them to be deserving candidates and re-designated them subject to shareholders’ approval.
Emami’s share price fell by 2.05% to close at Rs 498.15 at the Bombay Stock Exchange on Thursday while the Sensex closed at a fall of 1.29%.
Emami Ltd, popular for its brands like Navratna, BoroPlus, Fair & Handsome and Zandu Balm, was set up by R S Agarwal and R S Goenka in 1974. The company reported sales of Rs 2582 crore in 2020-21. The group eventually diversified into paper and packaging boards, bio-diesel and edible oil, real estate, healthcare, retail, art and writing instruments.
The company on Thursday also announced its October-December quarter results whereby standalone revenue from operations grew by 3.5% at Rs 875.3 crore as compared to the same period last year. Emami’s standalone net profit surged by 4.4% year-on-year to Rs 211.12 crore for the period under review.
The board of directors approved a buyback of shares up to a value of 10% of the company’s share capital and free reserves at a price not exceeding Rs 550 per share and declared a second interim dividend of 400% or Rs 4 per share for FY22.