Reckitt Benckiser Group Plc names Laxman Narasimhan as global CEO

NEW DELHI: Reckitt Benckiser Group Plc (RB) on Wednesday named Indian executive Laxman Narasimhan as global chief executive, succeeding outgoing chief executive Rakesh Kapoor. Narasimhan, the second Indian to take up the top job at the British healthcare giant after Kapoor, joins RB from beverages and snacks maker PepsiCo, where he is currently global chief commercial officer responsible for the US giant's long-term growth strategy.

Narasimhan holds a degree in mechanical engineering from College of Engineering, University of Pune, an MA in German and International Studies from The Lauder Institute at the University of Pennsylvania and an MBA in Finance from The Wharton School.

The 52-year-old Narasimhan will join RB as CEO-designate and be appointed to the board next month. He will assume his role as Group CEO from 1 September 2019, RB said in a statement. He will also lead the UK firm’s health business unit.

“We ran a thorough broad-based process, set several criteria including transformational leadership experience, deep consumer insights and talent motivation,” said RB chairman of the board Chris Sinclair speaking exclusively to ET hours after the announcement.

Friends and associates back home recall Narasimhan as a keen football and tennis player with affinity for poetry and music. Rajiv Bajaj, MD, Bajaj Auto, and Narasimhan’s classmate at St Vincent's School, Pune and College of Engineering, Pune, said: “He was a bright student, versatile sportsman and thoughtful friend. But most of all, he was ambitious and driven in the noblest meaning of these words.”

“It was clear early on that he would make it to the top on a global platform. We’re all so proud that he has and he's done that with his trademark chuckle at all times, despite adversities,” Bajaj added.

On whether the choice of picking an Indian at the helm was a clincher since outgoing CEO was also Indian, Sinclair said the process was not influenced by the country of origin. “However, my personal experience has been good for Indian CEOs,” he said.

For the maker of Dettol antiseptic, Air Wick air freshener and Nurofen, Strepsils, Gaviscon and Mucinex over-the-counter products, Narasimhan’s immediate mandate will be restoring topline performance. Kapoor, who moves out of RB after eight years, has had a few difficult years of late after a successful initial stint. The downsides included a cyberattack, a safety scandal in South Korea and sluggish performance of core brands like Nurofen and production glitches.

RB’s shares have lost about onefifth of their value from a peak in 2017. Kapoor also led the $17 billion acquisition of US baby formula maker Mead Johnson, and split the firm into health and home and hygiene. RB’s shares traded 1% lower on Wednesday in London.

“While Rakesh is leaving a very strong legacy, we hope Laxman will bring in some new dimensions and drive growth further,” Sinclair said.

He said improved performance in the health business, and leading the split in its health and home-care divisions will be the new CEO’s key priority.

India, a top five market for RB, will continue to be one of its core strategic markets, Sinclair said. “Anytime you have stability and a majority mandate, it’s very positive for the economy,” he said about the strong mandate with which the PM Narendra Modi-led NDA returned to power.