Reckitt Benckiser chief Laxman Narasimhan to step down

Laxman Narasimhan will step down as chief executive of Reckitt Benckiser at the end of September after three years at the helm of the UK-based consumer goods group.

The maker of Dettol disinfectant and Durex condoms said on Thursday that Narasimhan had decided to move to the US “for personal and family reasons” and to pursue “an opportunity that enables him to live there”.

Nicandro Durante, the senior independent director who was previously chief executive of British American Tobacco, will take over temporarily while the company seeks a permanent replacement.

Shares in the company dropped more than 5 per cent in early trading to £63.06, on news of Narasimhan’s departure.

The surprise announcement follows three years in which Narasimhan pursued a turnround following a series of missteps and lacklustre growth towards the end of the tenure of his predecessor, Rakesh Kapoor.

Martin Deboo, analyst at Jefferies, said: “Narasimhan has attracted a dedicated following for his turnaround and investment plan, and we expect the announcement of his departure to be a cause for concern amongst holders of Reckitt.”

Alicia Forry, analyst at Investec, said that investors would be reassured by the presence of Jeff Carr, chief financial officer, who “has been able to deliver the productivity savings ahead of schedule and is widely admired by the market.

“He would be a safe pair of hands alongside an incoming chief executive (or could even be considered for the chief executive role himself).”

The Slough-based group said Narasimhan, a former PepsiCo executive and consultant at McKinsey, had “led a successful rejuvenation of the company’s strategy, execution and foundational capabilities”.

Narasimhan has restructured the company since taking over, selling off underperforming businesses such as Scholl footcare and its Chinese infant nutrition business, which had been plagued by problems since Kapoor’s ill-fated $18bn acquisition of baby milk group Mead Johnson.

He has also wrestled with supply chain challenges since the start of Covid-19, but avoided problems such as a failed Scholl foot product launch and manufacturing mishaps that affected his predecessor.

Reckitt’s shares have risen only slightly since Narasimhan took the post in September 2019, however, following a volatile period in which the company benefited from a surge in disinfectant sales at the start of the pandemic, which then subsided.

Reckitt will continue its current strategy under Durante, the company said.

Narasimhan said he was “extremely proud of what we have accomplished together in these last three years”, adding that “although it is difficult to leave, it is the right decision for me and my family”.