Source:The Economic Times.
Eternal Ltd (formerly Zomato) has clarified that Rakesh Ranjan, the CEO of its food delivery arm remains an integral part of its leadership team even as some media reports of late alluded to a different narrative. The clarification was issued via a regulatory filing after there was a lot of speculation about Ranjan’s exit and changes in the top levels of the organization.
“We would like to clarify as on date, there has been no resignation tendered by Rakesh Ranjan and he still continues to be part of the leadership team. At Eternal Group, internal reshuffling of the leadership team is considered a standard practice as part of the company’s ongoing efforts to optimize organizational effectiveness,” Eternal said.
The rumors regarding Ranjan’s departure emerged amid reports that food delivery operations would be headed by Deepinder Goyal, founder and CEO of the group, temporarily. This may have suggested that a leadership shuffle is brewing, but statement has revealed that the move is a part of an ongoing restructuring and is not an abrupt departure or break.
Barely three weeks after getting clearance from the Ministry of Corporate Affairs, the online food and grocery delivery company has officially been renamed Eternal Ltd on the stock exchanges as well. The name change is part of the company’s plan of enrich its scope of business other than being just a food delivery service. Notwithstanding the corporate rebranding, the Zomato brand remains retained for its primary food delivery business, including app, promoting continuity, recall, and familiarity among customers.
Eternal’s stock, however, fell a mere 1.7%, to Rs 235 on the Bombay Stock Exchange last week. The market’s reaction is a vote of confidence in the company’s strategic direction and continuity of leadership in a time of immense change.
Leading Zomato’s kitchen operations for food delivery space, Ranjan has been instrumental in determining its growth and operational tactics. His continued involvement in our leadership team will add tremendous value as we continue to execute on our transformation and business innovation.
To sum up, Rakesh Ranjan has quit as the CEO and wants to focus on long-term strategic initiatives even as he continues to be the key man of the company. The company’s re-assurance underscores its strategic leadership reconfiguration (which should be kept steady) and focus on the long-term sustainability and growth in a competitive market.
