01 Dec , 2021 By : monika singh
Mumbai: Financial services major Shriram Group on Tuesday announced the creation of a board of management to drive the long-term vision of the conglomerate. The management board, which includes four senior group executives, will oversee promoter interest and will be mentored by founder R Thyagarajan.
The members are DV Ravi, MD, Shriram Capital; R. Duruvasan, Whole-time Director, Shriram Capital; Umesh Revankar, Non-Executive Director, Shriram Capital; and Jasmit Singh Gujral, Non-executive Director, Shriram Capital. All four senior members will be designated as trustees of the Shriram Ownership Trust (SOT).
"In my various interactions, I have reiterated that one individual cannot manage a large group like ours, it requires a set of individuals with varied skills who can collaborate to drive the group's vision and strategy," said R Thyagarajan, founder, Shriram Group. "In line with my conviction, a leadership team that will oversee the SOT's interest, as the promoter of the Shriram Group, has been constituted."
As per the succession plan, the promoters' stake in the Shriram Group will be owned by its current and future leaders. The Shriram Ownership Trust, a private discretionary body, was set up in 2006 to provide opportunities for the current and future leadership of the group to be beneficiaries of the Trust.
Revankar will also continue to head the transport finance business.
These beneficiaries will be responsible for the management of the Shriram Group. The board of the trust will constantly evaluate the performance of its leadership team and keep inducting additional members into the Trust to ensure the perpetuity of ownership and leadership.
The Board of Management will be responsible for defining the long-term strategy of the individual entities and the group and overseeing its execution," Thyagarajan said.
"The board members will manage essential areas that impact the group across entities and are not necessarily aligned to one particular entity. They will collaborate among themselves in a manner that will derive the optimum benefit to the group," said Thyagarajan.
SOT and Shriwell Trusts together own 42.9 per cent of the unlisted Shriram Capital which is the holding company for all the businesses. The group has assets under management of more than ?2 lakh crore. Sanlam Group has a 26 per cent stake in the holding company, the Piramal Group has 20 per cent and TPG Capital owns 9.4 per cent.
ET reported that the group is laying down plans to restructure its various financial services businesses that include merging its two listed firms - Shriram Transport Finance and Shriram City Union Finance.
0 Comment