Shriram Group has formed a board of management to drive the long-term strategy for the group.
Shriram Group founder R Thyagarajan said that the board appointed by Shriram Ownership Trust comprises 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.
The promoter of the group will be Shriram Ownership Trust, which holds a stake in Shriram Capital. Thyagarajan said at a press conference that the promotership rests with trust and not with an individual or family.
There have been a lot of apprehensions about the succession plan of the Shriram Group over the last few years. There is an expectation that more insight on this transition will be provided by Thyagarajan, though I have indicated that succession has been transitioned to SOT at various forums.
R. Thyagarajan will be the mentor for the board of management with the new leadership in place.
The officials who will be moving to the board of the promoter company will step down from their individual roles. He said that transition for the individual companies will be put in place over the next few weeks and months.
Thyagarajan made it clear that the restructuring exercise that the group has been planning for a long time is not part of the leadership change. Shriram Capital is looking into the merger of its two lending companies - Shriram Transport Finance Ltd and Shriram City Union Finance Ltd.
Shriram Capital holds a wide variety of businesses from financial services and insurance to asset management. This includes Shriram City Union Finance and Shriram Transport Finance. As per exchange data, Shriram Capital holds about 25.56% in Shriram Transport Finance and 33.86% in Shriram City Union Finance.