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The 38-year-old Chennai-based FMCG company CavinKare, which brought the ‘sachet’ revolution in India through its Chik Shampoo, is restructuring, with its founder CK Ranganathan all set to make way for the next-gen to run key verticals as part of a succession plan.
Ranganathan’s children will take over more responsibilities in the business while he will concentrate on innovation, apart from devoting time to external commitments with organisations such as CII, AIMA and TiE.
“Yes, it is a part of a succession plan. It is best to do it when the company is private. This is also a prelude to the planned IPO in a few years. I am not retiring. I will be active in the company focussing on innovation and taking care of commitments outside the company,” he told media in a virtual roundtable.
“The company has grown to a size and we would like to bring in a far more growth-oriented structure that brings in sharp focus for CavinKare 2.0 with thrust on innovation, e-commerce and combined synergies among multiple divisions,” he said.
FMCG vertical
As part of the restructuring, the FMCG vertical is consolidated and will be led by Venkatesh Vijayaraghavan, Director and CEO (FMCG), CavinKare, who has built a strong team for personal care that is growing at a healthy rate. He will be taking charge as the Group CEO and lead digital practices. E-commerce will also come under him with a special thrust from Ranganathan’s daughter Amudhavalli Ranganathan, who is looking after CK College of Engineering & Technology in Cuddalore.
Retail business
Ranganathan’s son Manuranjith Ranganathan who started CK Bakery, will head the retail business that includes dairy, salon and the animal hospital initiative SANCHU. He will report directly to Ranganathan.
The company was first named as Chik India; then renamed to Beauty Cosmetics in 1990 before being called CavinKare Pvt Ltd in 1998. From then, there was no looking back with innovation-led transformation transforming CavinKare from a personal care player to a FMCG conglomerate with dairy, snacks, food, beverages and professional care business.
With revenue of around ₹1,700 crore, the company aims to achieve ₹5,000 crore over three years. The company will invest ₹800-1,000 crore with nearly 50 per cent of it on dairy business, which will grow much faster, said Ranganathan. If Covid had not affected the business, the revenue would have been more than ₹2,250 crore, he added.
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