Britannia Shares Fall Over 5% After Varun Berry Resigns as MD & CEO Before Term Ends

Shares of Britannia Industries Ltd. fell over 5% on Tuesday following a major leadership change at the company. The FMCG major announced that its Managing Director and CEO, Varun Berry, has resigned from his position before his term ends in 2029, triggering investor concerns.

The company’s board has accepted Berry’s resignation with immediate effect, without requiring him to serve his notice period. The news came late on Monday evening, after market hours, leading to a sharp reaction in the stock when trading opened the next day.

New Leadership at Britannia

Britannia also confirmed that Rakshit Hargave will take charge as the new CEO and Managing Director starting December 15. Hargave recently resigned from Grasim’s Birla Opus over the weekend. Until he assumes office, N. Venkataraman, currently CFO at Britannia, will serve as the interim CEO.

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Market Reaction

Following the announcement, Britannia shares fell sharply in morning trade before recovering slightly, ending over 5% lower for the day. On Monday, before the news, the stock had closed 0.4% down at ₹6,135. Despite this short-term decline, Britannia has gained 4% in the past month and 27% so far in 2025, reflecting its strong overall performance under Berry’s leadership.

Varun Berry’s Impact

During Varun Berry’s tenure, Britannia witnessed a significant transformation. The company’s revenue grew by 2.5 times, margins expanded by over 900 basis points, and net profit surged sixfold. Its market capitalization has multiplied 18 times, reaching ₹1.47 lakh crore as of Monday’s close.

Berry’s leadership is widely credited with turning Britannia into one of India’s most profitable FMCG companies. His sudden resignation, therefore, has raised questions about the company’s strategic direction going forward.

Analyst Views

Brokerage house Motilal Oswal recently upgraded Britannia to “Buy” from “Neutral”, citing strong fundamentals. However, it also noted that there could be short-term pressure on the stock price due to Berry’s unexpected exit after a long and successful stint.

“With this change, the focus on the new CEO and his strategic layout will be crucial. Growth recovery will be a key monitorable in the near term,” the brokerage added in its note.

The Road Ahead

All eyes are now on Rakshit Hargave, who will lead Britannia starting mid-December. His leadership experience at Birla Opus and previous corporate roles will be crucial in steering Britannia through this transition. Meanwhile, the company’s near-term performance may depend on how quickly the new management stabilizes operations and maintains investor confidence.

Britannia remains one of India’s most trusted brands in the FMCG space, and the market will closely watch its next moves under new leadership.

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