ITC management rejig brings in young blood

KOLKATA: The tobacco-to-hospitality major, ITC Ltd, is effecting changes in its organisation structure and preparing the group's younger leaders to lay the bulwark for becoming the county's top FMCG player. In the last few months, a couple of talented young executives have been entrusted with top jobs in key segments of the company culminating with the churning of portfolios of executive directors of the company — Kurush Grant, Pradeep Dhobale and Nakul Anand.It appears to be a strategy for succession in the company where the term of its current chairman Y C Deveshwar is ending in 2017.
Sanjiv Puri who has become the new president of ITC’s crucial FMCG business is only 52 years old. He was earlier the chief executive of the tobacco division. Sources close to the development said this was not the lone example where relatively young and talented executives have been entrusted with top jobs. B Sumant (51) has taken over as the head of FMCG trade, marketing and distribution and is also the chief executive of the tobacco division. Sumant was the managing director of ITC Infotech, a relatively smaller business of the company. “The trade and marketing is very important departments of the company. He is the man to watch along with Sanjiv Puri,” added the source.
Sushma Rajagopalan who has taken over as the new CEO of ITC Infotech is only 49 years old. According to the source, “The new young team is now being groomed with an eye on the future because they can serve the company for long and can develop a vision. This will also help the chairman to develop a core team for the future.” There are few more examples where young talents have occupied key positions in the recent past. Hemant Malik (48) is the chief operating officer of the tobacco division and V L Rajesh (48) is the chief operating officer of the branded packaged foods business.
Dhobale who used to head the paperboard and packaging division for over a decade will now look after both the tobacco and non-tobacco FMCG business, This constitutes 70% of the revenue of the company. Dhobale was shifted to Kolkata from the paperboard headquarters in Hyderabad a few years back. During his tenure, ITC bought the paperboard business of Ballarpur.
Kurush Grant will now head paperboard and packaging and the finance function. The third executive director of the company, Nakul Anand, who is also the head of hotel business has been given additional charge of lifestyle retailing business.
Puri, who analysts say, is the man to watch, has been inducted in the management committee as well. The divisional chief executives of tobacco, personal care, education and stationary, foods, matches will report to Puri.
On Friday, ITC Ltd scrip lost 1.59% to end at Rs 356.70 apiece on the BSE. In 2013-14, the company’s net revenue jumped to Rs 32,883 crore while its profit after tax (PAT) rose to Rs 8,785 crore on a 10-year CAGR of 15.3% and 21.6% respectively.