India's Godrej Consumer names new CEO after Sitapati's 'sudden' exit (updated)
UPDATE 3-India's Godrej Consumer names new CEO after Sitapati's 'sudden' exit Adds executive comment in paragraphs 3 and 4, brokerage comment in paragraph 5
By Kashish Tandon and Praveen Paramasivam
Aug 11 (Reuters) - India's Godrej Consumer Products GOCP.NS said on Tuesday it has appointed finance chief Aasif Malbari as CEO and managing director for a five-year term after Sudhir Sitapati resigned just months after being reappointed to the roles.
The leadership transition comes as the consumer goods major, which makes Goodknight mosquito repellents and Cinthol soaps, looks to navigate uneven demand and improve margins as rising input costs squeeze the sector.
Godrej Consumer needs greater "execution rigour", Executive Chairperson Nisaba Godrej said on an analyst call. "What we want is a step up in execution, delivering results."
The management needed to move faster in areas including online sales and digital marketing, she said. Sitapati did not immediately respond to a request for comment via LinkedIn.
Brokerage Nomura said in an August 9 note that after Sitapati's appointment in October 2021, the company witnessed transformation including a sharper product range +and larger factories, setting it up for a "positive" impact on operations.
In May, the company reappointed Sitapati as CEO and MD for a five-year period from October 18. He resigned on Monday, about three months later, a move that analysts called "sudden" on the call with the management.
The elevation of a CFO to the top role typically reflects a focus on overseeing large investments and ensuring capital is deployed effectively, said Akshay D'Souza, an independent consumer consultant.
Godrej Consumer said it plans to have separate CEOs for India and international operations.
Malbari, who joined Godrej as CFO in 2023, has more than three decades of experience across the consumer goods and automotive sectors, including leadership roles at Hindustan Unilever HLL.NS and Tata Motors.
He will take over from Sitapati on Wednesday. Godrej Consumer named Vishal Kedia as interim CFO.
Last week, it reported a 12% rise in quarterly profit, supported by strong volume growth.
(Reporting by Mridula Kumar and Kashish Tandon in Bengaluru and Praveen Paramasivam in Chennai; Editing by Sonia Cheema and Janane Venkatraman)
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