Shriram Group announces succession plan; forms board of management

Shriram Group on Tuesday announced the formation of a board of management to drive the long-term strategy for the group.

Shriram Group founder R Thyagarajan said the board appointed by Shriram Ownership Trust constitutes four key personnel --DV Ravi, managing director, Shriram Capital; R. Duruvasan, whole-time director, Shriram Capital; Umesh Revankar, non-executive director, Shriram Capital & VC & MD, Shriram Transport Finance Company; and Jasmit Singh Gujral, non-executive director, Shriram Capital & executive VC for Shriram General Insurance Company.

Shriram Ownership Trust, which holds a stake in Shriram Capital, will function as the promoter of the group. “This promotership rests with the trust and not with an individual or family," said Thyagarajan at a press briefing.

During 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 this transition," Thyagarajan added.
With the new leadership in place, founder R. Thyagarajan will mentor the board of management.

The officials who will be moving to the board of the promoter company will step down from their individual roles. Transition for the individual companies will be put in place over the next few weeks and months, he said.

Thyagarajan also made it clear that the leadership change is not part of the restructuring exercise that the group has been planning for a long time. Shriram Capital has been exploring merger of its two lending companies - Shriram Transport Finance Ltd and Shriram City Union Finance Ltd.

Shriram Capital is the holding company for businesses ranging from financial services and insurance to asset management. This includes listed entities Shriram City Union Finance and Shriram Transport Finance. Shriram Capital holds about 25.56% in Shriram Transport Finance and 33.86% in Shriram City Union Finance, as per exchange data.

Also Read: Shriram Housing Finance gets Rs 300-crore equity capital from parent firm

Also Read: Multibagger alert! This midcap stock doubled shareholder's money in 2021