As part of its first step towards succession plan, homegrown Cavinkare Pvt. Ltd. on Monday announced a major revamp of its business operations by elevating generation next with a special thrust on verticals such as e-commerce and retail.
The 31-year-old company announced the elevation of promoter and founder chairman C.K. Ranganathan’s son and daughter.
“This is Cavinkare 2.0 to take on modern trade,” said Mr. Ranganathan, while announcing the elevation of Manuranjith Ranganathan and Amudhavalli Ranganathan. The personal care wing will be headed by Venkatesh Vijayaraghavan, director and CEO – FMCG. While Mr. Manuranjith will head retail, salon products and veterinary hospital, Ms. Amudhavalli will look after e-commerce. Mr. Ranganathan will focus on innovation. Mr. Manuranjith will report to Mr. Ranganathan, and Amudhavalli to Mr. Vijayaraghavan. Mr. Ranganathan said traditional companies are facing threat from modern trade and the former cannot grow without venturing into e-commerce. Currently, e-commerce accounts for 4% of Cavinkare’s revenues and this is expected to touch 25% over the next five years. “With this restructuring process, we expect our turnover to touch ₹5,000 crore over the next 3 years from ₹1,700 crore now,” he added. “Last year, we would have definitely crossed ₹2,250 crore, if not for the pandemic. Our businesses are currently at 92% of pre-COVID level,” he said. The FMCG company sells personal care, professional care, dairy, food and snacks, beverages, salon products and also runs two veterinary hospitals. Mr. Manuranjith, who established a bakery chain called CK Bakery, plans to open more such bakeries across Tamil Nadu and South India and take the total number of veterinary hospitals to 100 by 2024.
Mr. Ranganathan said that the company would be investing ₹800-900 crore over a period of three years, of which ₹400 crore will go towards expansion of dairy business, ₹150 crore for salon products, and ₹100-150 crore for IT/ITES. The remaining will be towards hospital and retail space.
The fund would be raised through internal accruals, external funding and borrowings. Mr. Ranganathan said he was also ready to dilute his stake.
To a question, Mr. Ranganathan denied he was retiring and added that he had “many more years to go.”
Please Email the Editor