Shriram Group announces succession plan; forms board of mgmt

Financial service company Shriram Group Tuesday outlined its succession plan and announced creation of a board of management.

The group's Founder R Thyagaraan said the promotership of the group has already been transferred to Shriram Ownership Trust (SOT).

This trust will be managed by the board of management comprising four senior executives -- Shriram Capital Managing Director DV Ravi; Shriram Capital Whole-time Director R Duruvasan; Shriram Capital Non-Executive Director and Shriram Transport Finance Company Vice Chairman and Managing Director Umesh Revankar; and Shriram Capital Non-executive Director and Shriram General Insurance Executive VC Jasmit Singh Gujral.

''We felt that the management of the Shriram Group cannot be entrusted only to one individual however talented he may be. It would be beneficial if the responsibility of guiding the organization and building it more and more, as we go along, is handled by a few people who are really talented in different areas," Thyagarajan said. 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 company said in a release.

Thyagarajan will mentor the board of management of Shriram Ownership Trust.

''I will only be available to them for consultation. I do not think that they will need any more guidance from me at this point of time, but whenever they feel the need to discuss something, I am available to them. I wouldn't be thrusting myself on any of them," Thyagarajan told reporters. The four members of the board will move away from their current responsibilities and focus entirely on the group. The transition will take place over the next few weeks or months and till then they will be involved in handing over the charge to the people who are going to take over from them.

Speaking about the restructuring of the group, Thyagarajan said the exercise has been on from the last few months and it will take concrete shape over the next few weeks or months. He, however, clarified that the formation of the board of management is not part of the group's restructuring plan. Shriram Capital Limited (SCL), a Systemically Important Core Investment Company (CIC), is the holding company for the financial services and insurance entities of the Shriram Group.

SCL and its operating entities have an overall customer base in excess of 2.16 crore, around 67,000 employees across 4,000 branches. It posted a net profit of Rs 4,900 crore (FY21) with assets under management (AUM) over Rs 2 lakh crore (September 2021).

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