Shriram Group announces succession plan; forms board of management

Shriram Group founder R Thyagarajan on Tuesday announced a leadership transformation at the group with the formation of a board of management to drive long-term vision and strategy.

The board of management appointed by the Shriram Ownership Trust (SOT) includes four senior personnel — DV Ravi, MD, Shriram Capital; R Duruvasan, Whole-time Director, Shriram Capital; Umesh Revankar, Non-Executive Director, Shriram Capital and VC and MD, Shriram Transport Finance Company; and Jasmit Singh Gujral, Non-Executive Director, Shriram Capital and Executive VC for Shriram General Insurance Company.

Group responsibility

Thyagarajan would step down from a formal role in the group and will mentor the board of management. “The management of Shriram Group can’t be restricted to only one individual. It will be good and beneficial if responsibility of guiding the organisation is handled by a few people. We need different strength and talent for sustaining an organisation,” Thyagarajan said, adding that an individual or individual’s family will not be promoter of the Shriram Group.

“During the last few years, there have been apprehensions about the succession planning of the Group. Though I have indicated that succession has been transitioned to Shriram Ownership Trust at various forums, there is an expectation of more insight on this transition,” he added.

The promotership of the Shriram Group has been transferred to the Shriram Ownership Trust.

The promoters’ stake in the Group will be owned by its current and future leaders. Shriram Ownership Trust, which is a private discretionary trust, was set up in 2006.

Noting that the four people have been with the group for over two decades, Thyagarajan said, “They will move together in a harmonious manner and guide the organisation in its future,” he said.

“I will continue to be available to our people as I have always been available to them,” he further said.

Shriram Capital is the holding company for the financial services and insurance business of the Shriram Group.

“Our operating companies across lending and insurance businesses have grown in size and scale, and continue to have immense potential and capabilities. All of these are led by able management team and a professional board. Our role would be to extend strategic vision to them while keeping the interest the ‘Shriram’ brand and ethos that has been guiding light for the group over the last four decades,” said DV Ravi.

Merger plans

On a question on whether this succession plan has been effected with a possible merger of Shriram Transport Finance and Shriram City Union Finance, Thyagarajan said some kind of restructuring of the group is being thought through and contemplated.

“A final decision will be taken in due course. Something may emerge in the next few weeks and months. Process of thinking through is taking place,” he said.

COMMENT NOW