Shares of Britannia Industries fell over 6% in intra-day trade on Tuesday following the exit of executive vice-chairman, MD & CEO Varun Berry. Berry, 64, resigned on November 6 and his notice period was waived, Britannia said on Monday after market hours.
Rakshit Hargave, who was to join as the executive director and CEO on December 15, will now take over as the managing director & CEO on the appointed date. In the interim, CFO Natarajan Venkataraman would serve as the CEO, the company said.
While the shares closed 3.02% down on the BSE at Rs 5,947 apiece on Tuesday, the exit of a long-time MD has rattled investors, sector experts said. Analysts expect pressure on Britannia’s stock in the near term, considering Berry’s long stint and exit without a notice period.
The focus on Hargave and his strategic priorities will also be critical, experts said. Berry, who led Britannia for 11 years as its MD, will be the third leader after Vinita Bali and Sunil Alagh to quit the firm after a long stint with the company. Sunil Alagh had left Britannia as its MD & CEO in February 2004 after putting in 30 years at the firm following differences with the promoters. Vinita Bali, who took over from Alagh as the CEO & MD in January 2005, left Britannia in March 2014, after nine years with the company.
Berry had replaced her in April 2014 as the company’s MD after joining a year before in January 2013 as COO. He became head of India operations in June 2013 and was inducted into the board as the ED in November 2013.
Over 12 years, Britannia’s net sales and net profit saw a compounded annual growth rate (CAGR) of 9.3% and 20.1% under Berry’s leadership. While the firm’s share price grew 27.7% in terms of CAGR over the same period.
In recent quarters, however, Britannia has faced stiff competition from local and regional brands and has had to adopt a price-led strategy to protect margins amid inflationary pressures. Berry had said that the company would move to an “aggressive topline and volume-led growth” in the second half of FY26.
