Another Indian rises to the top of a global corporation

In an unexpected announcement on Thursday, British consumer goods major Reckitt Benckiser Group plc said it was appointing Rakesh Kapoor, a group veteran, as the new chief executive officer (CEO) following the retirement of the present CEO, 54-year-old Bart Becht, a Dutch national.

In a conference call with investors and analysts in the UK, Adrian Bellamy, chairman, Reckitt Benckiser, said Becht had expressed his desire to retire from the post a week ago, and even as the company launched an external search for appropriate candidates to replace Becht, Kapoor was the unanimous choice of the board.

“We discuss succession at least twice a year,” Bellamy said.
Indian-born Kapoor, 52, has been with the Reckitt Benckiser Group for 25 years and will become the CEO effective September 1.

Becht, who has a significant holding in the company, said he will continue to be an investor and will not sell his shares.
The announcement of his retirement spooked investors, pushing the stock down 7.5% on the FTSE 100 — its biggest loss since 2003.

Becht, who was with the company for 16 years, including 11 years as the CEO, will stay on as part-time advisor to Kapoor and the board until September 2012 to ensure a smooth transition.

“I have been working with the company for 16 years. Sixteen years is a long time. I think I deserve a change. Even the company deserves a fresh leader who can bring in fresh ideas to propel the company to a new growth,” Becht said on the concall.

Becht is likely to assist Kapoor in integration of company’s recent acquisitions — SSL International Plc, the maker of Durex condoms, and India’s Paras Pharmaceuticals. “I will not join a competitor. I have spent life-long to build this company; there is no way I will join a competitor.”

The company acquired SSL International for $3.9 billion in July 2010. Six months later, it announced the acquisition of Ahmedabad-based health and personal care maker Paras Pharmaceuticals for Rs3,260 crore.

In India, the group’s business is led by Chander Mohan Sethi, who is the chairman and managing director, Reckitt Benckiser India and regional director (South Asia), Reckitt Benckiser Group.

Kapoor, who joined Reckitt Benckiser India  in 1987 as the regional sales manager for northern India, went on to serve various roles including general manager, Indian Southern region and regional marketing director, South Asia. In 2001, he was appointed senior vice president, regional director, Northern Europe, and in 2006, was promoted to executive vice president for global category development.

Becht, who was earlier with Procter & Gamble, joined Reckitt in 1988, and was appointed chief executive of Benckiser Detergents in 1995.  

In 1999, he was promoted as the global CEO and is the executive director of Reckitt Benckiser Group plc and chairman of the executive committee.

Kapoor’s experience of the household, health and personal care categories, and understanding of consumers and retailers in both developing and developed countries, gave him an upper edge for the role. He had played a key role in group’s acquisition of Boots Healthcare International in 2006.

Kapoor, just two years younger to Becht, so far had the responsibility of global category management, research and development, media, market research and strategic alliances.
Other Indian nationals to be holding the global CEO position of multinational consumer goods firms is Indra Nooyi of cola major PepsiCo Inc. Indian born chairman of FMCG giant Hindustan Unilever Ltd, Harish Manwani is the president of Asia and Africa for Anglo-Dutch parent Unilever Plc.

Reckitt sells products across household care, personal care and health care with operations in over 60 countries. Its 19 global power brands, namely Finish, Lysol, Dettol, Vanish, Woolite, Durex, Calgon, Airwick, Harpic, Bang, Mortein, Veet, Nurofen, Clearasil, Strepsils Gaviscon, Mucinex, Scholl and French’s, account for 69% of the net revenue.