Why 2025 became a watershed year for CEO churn in India’s consumer sector

The year 2025 is shaping up as a defining moment for leadership transitions in India’s consumer sector. From FMCG and food to consumer durables and appliances, an unusual concentration of CEO- and CXO-level exits and appointments has underscored the scale of structural change reshaping the industry.

At Hindustan Unilever Limited (HUL), Priya Nair—formerly President, Beauty & Wellbeing at Unilever—was elevated to Chief Executive Officer and Managing Director for a five-year term, succeeding Rohit Jawa.

Britannia Industries, meanwhile, appointed Rakshit Hargave as Chief Executive Officer and additional Whole-time Director for a five-year term. Hargave previously led Birla Opus, the Aditya Birla Group’s paints venture. In the same month, Britannia’s Vice-Chairman, Managing Director and CEO Varun Berry stepped down after more than a decade at the helm.

Leadership movement continued across the sector.

HUL named Rajneet Kohli as Executive Director, Foods, succeeding Shiva Krishnamurthy, who exited to pursue an external opportunity. Kohli had earlier served as CEO and Executive Director at Britannia.

Panasonic Life Solutions saw Manish Sharma step down as Chairman, South Asia, while Tadashi Chiba continues to oversee India operations.

At Wipro Consumer Care & Lighting, CEO and Wipro Enterprises Managing Director Vineet Agrawal announced his retirement effective January 2026, with Kumar Chander set to take over from February 1, 2026.

Nestlé India Chairman and Managing Director Suresh Narayanan also stepped down on July 31 after a decade-long tenure marked by crisis management and recovery, with former Amazon India country manager Manish Tiwary succeeding him.

The Coca-Cola Company, meanwhile, appointed industry veteran Hemant Rupani as CEO of Hindustan Coca-Cola Beverages Pvt. Ltd.

A convergence of macro and market pressures

Search and leadership advisory firms say the spike in leadership churn reflects broader market realities rather than isolated performance failures.

“Post-pandemic, FMCG and consumer durables companies have faced margin pressure, intensifying competition, and slower volume-led growth,” said Siddharth Verma, Head of Xpheno Executive Search, adding that boards are increasingly reassessing whether existing leadership is equipped for the next phase of growth.

Jaideep Mehta, Managing Director at risk and compliance firm Rzolut, noted that while some exits are company-specific, many stem from leaders struggling to cope with heightened volatility and structural shifts. “In several cases, boards have concluded that fresh leadership is required,” he said.

Leadership advisor Gauri Padmanabhan points to three overlapping forces driving this churn. Growth across the consumer sector has slowed, tightening margins and sharpening strategic scrutiny. Competition has intensified sharply, with startups, digital-first brands, and strong domestic players offering products and experiences that increasingly rival global incumbents. At the same time, digital platforms and social media have fundamentally altered how companies go to market and how consumers discover, evaluate, and choose brands.

Not all transitions, however, are reactive. Padmanabhan notes that Priya Nair’s elevation at HUL reflects deliberate, long-term succession planning and the rise of deeply tenured, homegrown leadership within large organisations.

D2C disruption and the empowered consumer

The rapid rise of D2C brands and digital-native competitors has played a central role in destabilising legacy business models. Verma notes that while many challengers remain relatively small, they are capturing high-margin segments, forcing established players to defend market share in a far more crowded arena.

Mehta agrees, pointing out that social platforms and recommendation engines have made consumers far more willing to experiment with unfamiliar brands. “A large share of incremental growth is migrating to startups,” he said, amplifying pressure on traditional companies—and their leadership teams.

Ashish Sanganeria, Senior Partner at Transearch, highlights how post-COVID shifts in health, nutrition, and everyday consumption have accelerated this trend. From high-protein foods to premiumised staples, consumer preferences are evolving rapidly. “In an environment with low tolerance for underperformance, leadership change has become the quickest lever to reset strategy,” he said.

Padmanabhan adds that while Indian consumers remain price-conscious, they are increasingly willing to pay for quality, convenience, trust, and attributes such as health and safety. This has fuelled the rise of “affordable luxury” and weakened traditional brand loyalty. Retail has also become truly omnichannel, with consumers expecting seamless experiences across online and offline touchpoints.

In digital channels, Verma notes, algorithms largely level the playing field. “A new or niche brand can sit next to a legacy market leader, with price, reviews, and delivery speed driving decisions,” he said. While consumer behaviour alone does not cause leadership churn, it significantly amplifies pressure on leaders to adapt faster than many legacy systems allow.

Why churn is sharper in legacy companies

Legacy organisations face structural constraints—complex processes, layered decision-making, and deeply embedded operating models—that make rapid transformation difficult. D2C and emerging brands, by contrast, operate with greater agility, faster go-to-market cycles, and fewer organisational barriers.

Mehta points out that most D2C firms are founder-led, naturally limiting leadership churn unless a major crisis occurs. Legacy companies, however, are professionally managed and often listed, facing quarterly scrutiny. They must undertake long-term transformation while being judged on short-term performance—a mismatch that heightens leadership pressure.

Padmanabhan notes that leadership movement is not one-directional. Senior executives have moved both from legacy firms to startups and from younger companies to large retail groups. Many emerging brands actively seek experienced leaders who can manage scale, complexity, and future growth, making legacy talent particularly attractive.

Boards, investors, and rising expectations

According to Verma, boards and investors are now prioritising speed, agility, and digital execution alongside stability. When growth slows or margins compress, boards increasingly look for leaders who can reimagine operating models and respond faster to competition.

Mehta argues that investor pressure is not new, but acknowledges that volatility has raised the stakes. Padmanabhan adds that leadership capability has become a central lens through which boards and investors assess future growth, elevating the importance of succession planning and leadership pipelines.

Sanganeria points to examples at HUL, Britannia, and Nestlé, where leadership changes reflect expectations that CEOs deliver digital transformation, cost discipline, and growth simultaneously—often within compressed timeframes.

AI, quick commerce, and the leadership challenge

AI, e-commerce, and quick commerce have further intensified the leadership challenge. Verma notes that these forces enable instant comparison, aggressive pricing, and rapid brand discovery, directly impacting revenues and margins.

Mehta highlights AI’s expanding role in marketing precision and supply chain efficiency, making technological fluency essential for today’s CEOs. Padmanabhan adds that AI is reshaping decision-making itself, shifting organisations from experience-led judgments to data- and algorithm-supported models. Leaders and cultures slow to adapt, she warns, often struggle—adding yet another layer of pressure to an already demanding leadership environment.