Shriram Group sets up board as part of succession plan
Shriram Ownership Trust, which appointed the board, holds stake in Shriram Capital and will function as the promoter of the group
PremiumMUMBAI : Shriram Group founder R. Thyagarajan on Tuesday outlined the group’s succession plan following his decision to step aside and act as a mentor to a board of management, which will run the group’s day-to-day operations.
He said the group’s promotership has already been transferred to Shriram Ownership Trust, which has stake in Shriram Capital Ltd, the holding company for all group businesses. “This promotership rests with the trust and not with an individual or family," Thyagarajan said at a press briefing.
The trust has formed a four- member board to manage all the group businesses, he said. The board comprises D.V. Ravi, managing director, Shriram Capital; R. Duruvasan, whole-time director of Shriram Capital; Umesh Revankar, non-executive director, Shriram Capital and managing director and vice chairman of Shriram Transport Finance Co.; and Jasmit Singh Gujral, non-executive director, Shriram Capital and executive vice chairman, Shriram General Insurance Co.
The board of management will be responsible for defining the long-term strategy of the individual entities and the group and overseeing its execution. The members will manage key areas that impact the group across entities and may not necessarily be aligned to one particular entity. “They will collaborate among themselves in a manner that will derive the optimum benefit to the group," Thyagarajan said.
“Over the last few years, there have been apprehensions about the succession plan of the Shriram Group. Though I have indicated that succession has been transitioned to SOT at various forums, there is an expectation of more insight on the transition, he added.
The move comes ahead of a speculated restructuring of the group, which is likely to see the group's unlisted parent Shriram Capital merging with its listed entities Shriram Transport Finance Ltd and Shriram City Union Finance Ltd, to create a unified lending entity. The group, however, said that two developments are entirely separate exercises.
Shriram Capital has been exploring a merger of its two lending companies —Shriram Transport Finance Ltd and Shriram City Union Finance Ltd. Shriram Capital holds about 25.56% in Shriram Transport Finance and 33.86% in Shriram City Union Finance as per exchange data.
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