Retail giant Procter & Gamble India's managing director Shantanu Khosla will join the consumer business of Crompton Greaves
Retail giant Procter & Gamble India's managing director Shantanu Khosla will join the consumer business of Crompton Greaves to spearhead the company under its new private equity owners. Khosla is coming on board in a senior leadership position and is likely to be the vice-chairman and managing director, said multiple sources with knowledge of the matter.
Crompton Greaves' consumer division, Crompton Greaves Consumer Products, is being spun out and getting demerged from its parent into a separately listed company through a court approved process.
The 55-year-old, who will switch shampoo and detergents for fans and lighting, will have a board seat and a chief executive under him to drive daily operations, said these sources who didn't wish to be identified.
The IIT-Bombay and IIM-Kolkata alumnus made his name at P&G where he led several business units around the globe for more than three decades. During the 13 years when he was at the helm of the Indian unit, the company's revenue multiplied more than six times to Rs 9,000 crore to become the country's second largest home and personal care firm after HUL. Last week, P&G India announced Khosla is exiting the consumer products major with effect June 30.
"The trend of hiring professional management by financial sponsors is commonplace globally. It can add a fresh impetus for future growth of any consumer brand," said Ritesh Chandra, executive director, head-consumer group, at Avendus Capital.
Around a month ago, Crompton Greaves, part of Avantha Group, agreed to sell its consumer electricals unit for Rs 2,000 crore to Advent International Corp and Singapore's Temasek Holdings to unlock value and help repair its leveraged balance sheet. After the separation, which received board approval in February, the shareholding pattern of the new consumer company will mirror that of Crompton Greaves. The consumer electricals unit will be first demerged into a standalone company and will be list separately. Advent and Temasek bought out the promoter stake of 34.38% in the business a move that will also trigger an open offer for an additional 25% in the new company. Upon completion, the new PE owners could end up with close to 60% ownership.
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