Copyright thehindubusinessline
Shares of Grasim Industries fell over 6 per cent, the most in over 3 years, a day after the company said Rakshit Hargave, the CEO of its paints business Birla Opus, had resigned to join biscuit maker Britannia. Hargave, who has been leading Birla Opus since its launch early last year, was the main driving force behind the paints foray by Grasim. He has been instrumental in rapidly scaling up the business, posing a threat to market leader Asian Paints. “He was instrumental in building the plants, establishing the distribution and creating a large product portfolio comparable to peers,” said Manoj Menon, research analyst, ICICI Securities, in a note, adding “while we expect Birla group to announce a successor soon, we believe the exit of the chief architect will have a potential effect on near-medium term growth prospects.” Exit overhang Analysts are also concerned about the potential impact that Hargave’s exit will have on any mid to senior level management churn in the company. Jefferies termed it a ‘negative surprise.’ “This will be an overhang on the stock in the near term,” said Motilal Oswal, while reviewing Grasim’s results. The stock ended 6.4 per cent lower at ₹2,697 on the NSE on Thursday. The stock has gained close to 11 per cent so far this year, while over a one-year time frame it has moved up just about 2 per cent. The street will be watching the company closely for any change in strategy and course correction. Meanwhile, shares of larger rival Asian Paints rose 4.6 per cent. The rapid ascendancy of Birla Opus has seen an erosion in Asian Paints’ market share and the spike in its stock price was largely sentiment driven, analysts said. Published on November 6, 2025
