Shares of Grasim Industries experienced a decline of over 6 percent, marking its most significant drop in more than three years, following the announcement that Rakshit Hargave, the CEO of its paints division Birla Opus, would be leaving to join biscuit manufacturer Britannia.
Hargave, who has led Birla Opus since its inception early last year, played a crucial role in rapidly expanding the business, creating competitive pressure for market leader Asian Paints. Manoj Menon, a research analyst at ICICI Securities, noted, “He was instrumental in building the plants, establishing the distribution, and creating a large product portfolio comparable to peers.” Menon added that while a successor is expected to be announced soon, Hargave’s departure could impact Grasim’s growth prospects in the near to medium term.
Concerns also arose regarding potential turnover in mid to senior management as a result of Hargave’s exit. Jefferies characterized this situation as a “negative surprise.” Motilal Oswal stated, “This will be an overhang on the stock in the near term,” as the firm reviewed Grasim’s recent financial results.
On Thursday, Grasim’s stock closed at ₹2,697, down 6.4 percent. Despite this recent decline, the stock has gained nearly 11 percent this year, while over the past year, it has increased by approximately 2 percent. Analysts are closely monitoring the company for any shifts in its strategic direction.
In contrast, shares of Asian Paints, Grasim’s larger competitor, rose by 4.6 percent. The growth of Birla Opus has contributed to a loss of market share for Asian Paints, and analysts suggest that the increase in Asian Paints’ stock price is primarily sentiment-driven.
Published on November 6, 2025.
