Shriram Group Announces Succession Plan – Board of Directors to Oversee Promoters’ Interest
Shriram Group, the financial services giant that covers retail lending, truck finance, housing finance, life insurance, general insurance and wealth management, today announced the formation a board of directors to drive the group’s long-term vision and strategy. The board of directors appointed by the Shriram Ownership Trust (SOT) is made up of 4 key people, namely Mr. DV Ravi, MD, Shriram Capital, MR Duruvasan, full time director, Shriram Capital, Mr. Umesh Revankar, no – Executive Director, Shriram Capital & VC & MD, Shriram Transport Finance Company and Mr. Jasmit Singh Gujral, Non-Executive Director, Shriram Capital & Executive VC for Shriram General Insurance Company. Once the new management is in place, the founder R. Thyagarajan will be the mentor of the board of directors.
Explaining the transition, R Thyagarajan, the patriarch of the group said, âThe growth of the Shriram group must be attributed to the strong management team, which has evolved over time. The group began its foray on a small path through the chit The management team, made up of senior executives from the various entities of the group, played a decisive role in the development of the companies up to their level of growth and profitability current.
In recent years, there have been apprehensions about the succession planning of the Shriram Group. Although I have indicated that the estate has been transferred to SOT in various forums, more information is expected on this transition.
Internally, we have made it clear that the promoters’ stake in the Shriram Group will belong to its current and future leaders who will be the best stewards of Shriram’s future growth. The SOT was formed in 2006 with this objective. SOT is a private discretionary trust, which will offer the opportunity to current and future leaders of the group to be the beneficiaries of the trust. These beneficiaries will be responsible for the management of the Shriram Group. This set of individuals, with varied skills, will work together to drive the group’s vision and strategy. SOT’s Board of Directors constantly evaluates the performance of its management team. He continues to bring additional members into the Trust to ensure perpetuity of ownership and leadership to manage the Shriram group. “
âIn my various interactions, I have reiterated that a single individual cannot manage a large group like ours. It requires a diverse set of individuals who can work together to drive the group’s vision and strategy.
In accordance with my belief, a management team which will oversee the interest of SOT, as promoter of the Shriram group, has been formed, “he added.
The team will be designated as the Management Board and will consist of the following members:
DV Ravi – Managing Director
R. Duruvasan – Trustee
Umesh Revankar – Administrator
JS Gujral – Trustee
This Management Board would constitute SOT’s succession plan.
The Management Board will be responsible for defining the long-term strategy of the individual entities and the group and for supervising its execution. The members of the board of directors will manage the essential areas which have an impact on the group across the entities and are not necessarily aligned with a particular entity. They will collaborate with each other in a way that will get the best out of the group.
Over the years, the Shriram Group has kept “the common man or Aam Aadmi” at the center of all of its business decisions. He has always excelled in serving the underserved and focused on prosperity at the bottom of the pyramid, the needs of which have so far not been fully met by actors in the organized financial sector. Through its credit activities, the group ensures that more than 95% of the loans granted are channeled towards meeting the financial needs of this segment in the country. Shriram Transport Finance Company specializes in providing credit to commercial vehicle drivers who wish to own a vehicle. Likewise, at Shriram City Union Finance, most of the funded two-wheelers are intended to support the livelihoods of the self-employed segment. The MSME business in Shriram City has been aptly called Small Business Finance, in line with the company’s ethos of serving the common man.
As we embark on our next stage of growth, the Board of Directors will strategically assist all of our operating entities to collaborate and strengthen our customer relationship model. Working closely with our partners at Shriram Capital – Sanlam, PEL and TPG, SOT’s Board of Directors will oversee the group’s growth and strategy in the next phase.
Commenting further on the announcement, Shriram Group Founder R. Thyagarajan said: âDuring my 47-year journey, I have seen the industry evolve on several occasions due to the introduction of policies that have helped serve underserved people. I am happy to point out that Shriram Group has always been synonymous with financial inclusion and has prioritized the socio-economic development of all of its clients while delivering value to its stakeholders. We have stood the test of time, braved economic cycles and continued to build trust with our customers. This in itself is a testament to the competence and strength of our team. Our various companies have grown to become leaders in their specific fields of activity. “
“It has been a great trip so far and I have no doubts that Ravi, Duruvasan, Umesh and Gujral along with the other leaders will do a remarkable job of taking the group to new heights.” he added.
Commenting on the announcement, Mr. DV Ravi, MD, Shriram Capital, said, âFirst of all, we all thank RT for having the vision, courage and determination to build a business of this magnitude with a strong focus. on the Aam Aadmi. The group has enabled more than 21.6 million customers to make their dreams come true thanks to the Shriram group. I speak for the four of us, when I say that we are delighted to take on the responsibility of the group’s board of directors. Our companies operating through lending and insurance businesses have grown in size and scale, and continue to have immense potential and capabilities. All of these are led by a competent management team and a professional board of directors. Our role would be to extend the strategic vision to them while keeping the interest of “Shriram” the brand and the ethics that have guided the group over the past 4 decades. “