GCPL's CEO Sudhir Sitapati Urges Cross-sector Collaboration In Wake Of Sebi Controversy

Sudhir Sitapati, Managing Director and CEO of Godrej Consumer Products  (GCPL) shared his thoughts on the delicate relationship between India’s government and private sector, using the recent controversy surrounding Sebi Chairperson Madhabi Puri Buch as a case study. Sitapati took to LinkedIn to reflect on the allegations and the broader implications for the relationship between public and private sector leadership in India.

The controversy centres on allegations that Madhabi Puri Buch's husband, Dhaval Buch received consulting payments from top-tier companies, with insinuations that these engagements were linked to Madhabi's position at Sebi. While the allegations have stirred public debate, Sitapati who worked with Dhaval during his 22-year tenure at Hindustan Unilever (HUL) defended his former colleague’s integrity.

"I have known of and then known Dhaval Buch for the 22 years that I worked at Hindustan Unilever. In a company known for its integrity, his reputation for integrity stood out. In a company known for high-quality professionals, his reputation as the best supply chain professional HUL ever had, also stood out," Sitapati wrote in his LinkedIn post.

Sitapati emphasised that the demand for Buch's expertise in supply chain management post-retirement is entirely credible and should not be seen with suspicion. He suggested that the core of the issue lies in the clash between the values and operations of the government and private sector.

Sitapati’s comments highlighted the different norms governing the two sectors, noting that private sector professionals operate on a 'trust and declare' basis, where conflicts of interest are disclosed and managed. In contrast, public sector norms are stricter, requiring not just adherence to the rules but also the avoidance of any appearance of impropriety.

"Even the whiff of private sector engagement is treated with suspicion", Sitapati observed, adding that hiring someone from the corporate world would naturally come with a history of private sector involvement. He argued that this may be difficult for the public sector to reconcile without adjusting its mindset toward such professionals.

Sitapati also pointed out the disparity in compensation between the two sectors, sharing a personal anecdote about his early career. "As a young management trainee, my salary was higher than that of the Cabinet Secretary, who happened to be my uncle," he said. The high fees involved in Dhaval Buch’s consulting work, which are viewed with scepticism in government circles are standard in the corporate world for someone with his qualifications, according to Sitapati.

Sitapati concluded by suggesting that India’s socialist-leaning biases against the private sector need to be reconsidered. He believes that India is at a pivotal moment in its development and the government could greatly benefit from the expertise of private sector professionals. However, he cautioned that unless there is greater understanding and respect for the corporate context, senior figures from the private sector may be discouraged from taking up government roles in the future.

"That would be a real pity," Sitapati remarked, underscoring the missed opportunities for cross-sector collaboration if the government and private sector cannot find common ground.

His post has since sparked discussion among business leaders and policymakers about how to better integrate private sector talent into public roles without compromising transparency and integrity.