Corporate Governance in Godrej Consumer Products Limited
GCPL now has a 13-member Board of Directors, including 7 Independent Directors who are
recognised experts with skills in finance, information technology, marketing, and corporate
strategy from a variety of sectors. None of the Independent Directors have ever had any
business dealings with the Godrej Group.
The Independent Directors are given the chance to meet with the Statutory Auditors prior to
the start of the Audit Committee meeting, without the presence of the management team.
[ CITATION Rep21 \l 16393 ]
Few instances where the company did not comply with the right frame of corporate
governance are as follows:
1. Vivek Gambhir stepping down as MD & CEO (June 2020)
Godrej Consumer Products Limited (GCPL) said that managing director Vivek
Gambhir has resigned due to personal reasons, and that Nisaba Godrej, who is now
the executive chairperson, would assume the additional job. Gambhir, 51, said in a
statement that he was suffering from lifestyle-related health problems and that his
choice to resign was to spend more time with his family. He had been living apart
from his family for the previous decade, visiting them only on weekends.
2. Sudhir Sitapati appointed as Managing Director & CEO (May 2021)
Godrej Consumer Products (GCPL) shares rose 15% to Rs 823.30 on the BSE after
the fast moving consumer goods (FMCG) giant announced that Sudhir Sitapati will
take over as its managing director (MD) and CEO in October 2021. Sudhir Sitapati,
who has worked for Hindustan Unilever for almost two decades, is stepping down as
executive director of the company's foods and refreshment (F&R) division. [ CITATION
Bus \l 16393 ]
3. Adi Godrej steps down from GCPL board (Aug 2021)
The 79-year-old patriarch stepped down from the position of Chairman of the Board
of Directors on August 4, 2021. He stated that he will continue as the “Chairman
Emeritus” of the company.
The successor was none other than his own daughter, Nisaba Godrej. [ CITATION Eco \l
16393 ]
4. Rift within Godrej family
The two groups within the Godrej group, one that is led by Adi and Nadir and the
other led by their cousins Jamshyd and his sister Smitha Godrej Crishna. The family
group, which owns the most land in Mumbai, has now hired top law firms to deal with
the matter. In Mumbai's Vikhroli, Godrej & Boyce has 3,400 acres of property, of
which only 1,000 acres may be developed. The value of this plot of land alone is
believed to exceed Rs 20,000 crore. According to estimates, the 1,000-acre plot of
land may be developed into a real estate project worth more than Rs 1 lakh crore, and
both Adi and Nadir Godrej are in favour of the area's development. [ CITATION new \l
16393 ]
5. Wipro vs Godrej Commercial Disputes
In 2007, Godrej Consumer Products (GCPL) won an injunction against a Wipro
Consumer Care and Lighting (WCCL) commercial for its liquid detergent brand
Wipro SafeWash in a Punjab court. GCPL says that the commercial unfairly
compares its product Ezee to another. WCCL declined to comment until the court
provided further information.
Again in 2013, another dispute happened between the two competing firms. Wipro
Consumer Care and Lighting (WCCL), the producer of the Santoor soap brand, has
recently acquired an injunction from a Hyderabad court against Godrej Consumer
Products' (GCPL) commercial for their soap brand Godrej No 1. Wipro disputed the
commercial, which made broad similarities to "Santoor Soap," on the grounds that it
was unfair, immoral, wrong, and deceptive. The court agreed to Wipro's request and
issued an ad interim injunction prohibiting GCPL from continuing with the
contentious advertising until further rulings are issued. [ CITATION Bus1 \l 16393 ]
6. Voluntary Evaluation
Godrej Consumer Products said that an external rating agency, the Investment
Information and Credit Rating Agency, has conducted a voluntary evaluation of its
Corporate Governance standards (ICRA).
The company has had a Corporate Governance Rating of CGR2+ and a Stakeholder
Value Creation and Governance Rating of SVG1 for numerous years. [ CITATION
Bus2 \l 16393 ]
References
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md-and-ceo-121051200219_1.html
Economic Times. (n.d.). Retrieved from 3.
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step-down-from-gcpl-board-next-month-to-remain-as-chairman-
emeritus/articleshow/85048751.cms?from=mdr
news18. (n.d.). Retrieved from 4. https://www.news18.com/news/business/rift-in-godrej-family-
what-is-the-dispute-all-about-read-here-2206585.html
(2020-21). Report-on-Corporate-Governance-2020-21. GCPL.
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gets-stay-against-godrej-no-1-soap-ad-107111600049_1.html
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