Hero Group, the multi-crore business enterprise owned by the Munjal family, on Thursday announced realignment of ownership within the businesses to achieve consolidation, investment in new ventures and diversification plans.
As part of the realignment, Sunil Kant Munjal, Joint Managing Director, Hero MotoCorp, will step down from the Board of Directors to focus on other businesses, with effect from August 16.
“He has expressed his desire to step down from the Board of Directors of Hero MotoCorp, once his tenure as the Joint Managing Director of the company comes to an end on August 16,” Hero MotoCorp said.
The realignment within the BML Munjal family was in continuation of the Hero Group’s restructuring process started by late Brijmohan Lall, its founder, in May 2010.
The current round of realignment, like the earlier one, is expected to bring about robust growth and expansion, the Group said.
As part of the realignment, Sunil Kant Munjal will focus on some of the other group businesses, including Hero Corporate Service and its allied companies as Chairman, while also pursuing new business interests. “This is also an exciting time for me to consolidate and strengthen some of the existing businesses and to explore new opportunities that are close to my heart,” he said.
The business ventures of the New Delhi-headquartered Hero Group span across sectors including two-wheelers (Hero MotoCorp), automotive components (Rockman Industries), NBFC (Hero FinCorp), renewable energy (Hero Future Energies), electronics (Hero Electronix), education (BML Munjal University), steel cold rolling (Hero Steels), insurance distribution (Hero Corporate) and real estate (Hero Realty).
“This is a step to further stimulate the immense diversification opportunities that the Hero Group envisions for itself, while enabling family members to pursue their own aspirations,” Pawan Munjal, Chairman, Managing Director and Chief Executive Officer, Hero MotoCorp, said.
Shares of Hero MotoCorp closed at ₹3,192.30 on the BSE on Thursday, down 0.35 per cent from the previous close.