The Consistent Performer
Vivek Gambhir, 50, MD & CEO of Godrej Consumer Product (GCPL). Gambhir has consistently performed as a CEO, taking GCPL’s growth to profitable heights. He was elevated to the position of MD from a chief strategy officer of Godrej Industries, as Adi Godrej had said on his anointment in 2013, “has been a key architect of GCPL’s 3x3 growth strategy and has played a key role in the Godrej Group’s overall value creation and transformation story over the last few years. Gambhir is a proven leader who has shown the ability to attract, develop and retain top talent throughout his career. We are confident that he is the right person to lead GCPL in its next phase of growth”.
Rightly so, Gambhir hasn’t disappointed the Godrej’s over their choice of CEO, Gambhir joined the Godrej Group in 2009. He was responsible for enhancing the strategic capabilities within the group companies, guiding overall group strategy, conducting portfolio analysis, leading mergers and acquisitions (M&As) and driving special projects.
Under Gambhir’s leadership, the group’s planning processes have become more robust. He helped define the ‘create’ portfolio strategy and the 10X10 vision for the Group. He also oversees the finance, investor relations, legal and IT functions for Godrej Industries.
Under Gambhir, GCPL’s performance has been consistent despite slowdown challenges. During the third quarter of fiscal year 2018, GCPL has delivered competitive and profitable growth, while continuing to make healthy investments in our brands. GCPL’s consolidated comparable sales increased by 11 per cent while ebitda growth was stronger at 18 per cent, in constant currency terms.
GCPL’s India business performance was resilient with 17 per cent comparable sales growth, driven by 18 per cent volume growth. It continued to grow ebitda ahead of sales, with a growth of 32 per cent. The performance of its international portfolio was relatively muted due to a challenging environment. However, we expect the environment to improve in the quarters ahead.
“Going forward, we expect stronger consumer demand in India. We are positive about the future growth prospects of our international portfolio. We will also continue to invest in building a sustainable platform for the future,” said Gambhir in GCPL’s financial statement.
Gambhir has been among the highest paid FMCG CEOs for the last two years, at nearly Rs 19.622 crore annual remuneration, he was the highest paid among his peers in listed consumer goods companies in 2015-16, he was ahead of HUL MD & CEO Sanjiv Mehta and ITC Chairman Y.C. Deveshwar for the period under review. But in 2016-17, he took home Rs 15.95 crore as pay, a drop of 18.7 per cent over the previous year. He still earned 377 times the median pay of a worker at the firm. The company’s profit rose 57 per cent to Rs 1,304 crore during the period, year-on-year.
