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Business News/ Companies / News/  Varun Berry plans to streamline Britannia’s senior management team
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Varun Berry plans to streamline Britannia’s senior management team

The de-facto head is planning to make the top hierarchy leaner even as Vinita Bali prepares to leave Britannia

Varun Berry has also beefed up Britannia’s sales and distribution by hiring mid-level executives from bigger companies. Photo: MintPremium
Varun Berry has also beefed up Britannia’s sales and distribution by hiring mid-level executives from bigger companies. Photo: Mint

Bangalore: As long-time managing director and chief executive officer (CEO) Vinita Bali prepares to leave Britannia Industries Ltd, the biscuit maker’s de facto head and Bali’s likely successor Varun Berry is planning to streamline the senior management structure.

Currently, 12 senior executives report directly to Berry, who joined the company, which also sells dairy products, in January last year as chief operating officer (COO) and was promoted to lead its India business in May.

Now, Berry is planning to make the top hierarchy leaner and have fewer executives reporting to him, according to two people familiar with the matter.

“There are 12 people currently reporting (to Berry); that needs to be consolidated. Britannia is looking at bringing that number down to eight or nine. The company is evaluating (the present) senior executives who can take more responsibility. It may happen within the next four months," said the first person, who has direct knowledge of the matter. “The problem is not with the people, (Berry) is happy with the quality of talent, the problem is only with the span of control, which needs to be reduced."

Both persons declined to be named.

Britannia did not respond to emailed questions seeking comment.

“Twelve reportees is far too high a number for a CEO. It is effective to have an optimal team of eight to 10 for a CEO; allows a larger portfolio for the team to handle, consolidation and potential to create a succession plan for the long term," said Sangeeta Lala, senior vice-president at recruitment company TeamLease Services Pvt. Ltd.

Last year, the maker of Good Day and Tiger biscuits shuffled its management twice as promoter Nusli Wadia wanted a new management team to help the company recover its margins and boost market share.

In a surprise move in May, Britannia named former PepsiCo executive Berry as the head of the company’s India business, which accounts for over 90% of its sales. It said then that Bali, its managing director for over eight years, would look after the fledgling global business. In November, Berry got another promotion—and a board seat—as Britannia named him executive director.

Mint reported on 7 January that Berry would replace Bali as CEO. A third person said on Monday that Berry would replace Bali before March. He too requested anonymity. The Economic Times newspaper had reported the news first.

Last year, a number of top executives, including former COO Neeraj Chandra and human resources (HR) head Sreekanth Arimanithaya, left as part of the management shuffle.

After taking charge as Britannia’s de facto head, Berry has been promoting several internal candidates to senior roles, the two people cited first said. Ritesh Rana, a mid-level HR executive, has been the acting HR chief while Gunjan Shah, who has been at the company since 2007, was made the head of replenishment, they said.

Britannia was earlier evaluating executives from other companies for the HR job, but has now called off the search, the first person cited above said. “If there’s a job that comes up, the first preference is for an internal candidate because there is good talent at the company and it helps to encourage and retain people," the person said.

For some roles, Britannia has recruited executives from outside. The company hired Harish Navarathna as head of IT from Capgemini earlier this month, the first person cited above said.

Berry has also beefed up Britannia’s sales and distribution by hiring mid-level executives from bigger companies such as PepsiCo and Hindustan Unilever Ltd, the first person said.

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Published: 30 Jan 2014, 12:45 AM IST
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