The string of acquisitions and new product launches in Phase 4 were slowly transforming Marico into a diversified, multi-product, multi-geography, FMCG company from a hair and edible oil company. In order to cross-pollinate products and know-how between Marico’s Indian and international businesses, Marico undertook a restructuring of its businesses in January 2013. The management also decided to focus on capital allocation given that its ROCEs had halved to 24 percent in FY13 from 50 percent in FY08.

Marico’s domestic and international businesses were merged to create one FMCG business while Kaya was demerged from the FMCG business in order to allow it to run in an entrepreneurial manner as a retail business. Saugata Gupta, who until then headed the domestic consumer products business (CPB), was elevated to the chief executive officer for the entire FMCG business. Vijay Subramaniam, who headed the international FMCG business, was appointed as Kaya CEO after its demerger.

A year later, in 2014, Mariwala stepped down as managing director, relinquishing the post to Mr. Saugatap Gupta—a rare move among Indian promoters, most of whom struggle to contemplate ceding control to professional management.

Taken from Unusual Billionaires book.