In an unexpected move, Sunil Kant Munjal, a member of the promoter group, has “expressed his wish” to resign from the board of directors of Hero MotoCorp in order to focus on his autonomous and core enterprises in addition to pursuing other business interests.
When his term finishes in mid-August, Sunil, who is also the chairman of Hero Corporate Service, will resign. In a statement to the stock exchanges, HeroMoto Corp stated that the realignment “would not effect the overall promoter shareholding, strategic direction, or operational management of the company.”
Sunil Munjal reportedly realigned “his business/partnership share in the Hero Group,” according to a separate statement. Sunil’s older brother Pawan Munjal is the CEO of Hero MotoCorp, the nation’s leading two-wheeler manufacturer.
In a statement, it was stated that “Hero Group entities, promoted by the Munjal family, announced a realignment of ownership within their businesses, to achieve consolidation of existing businesses, investment in new ventures, and diversification,” adding that this was a continuation of the restructuring process.
Founder of the Hero Group, the late Brijmohan Lall, in May 2010.
When contacted by TOI, Sunil and Pawan Munjal insisted that the transfer had been finalised in perfect harmony and that there were no “differences in the family.” In a call with Pawan present, Sunil stated, “In our family, we have always done transition calmly, peacefully, and in a friendly way.” The choice was “fully discussed in the family, and as a family,” according to Sunil.
When asked if he would now reduce his stake in the organisations that run Hero MotoCorp, he responded, “I am unable to offer any commentary. If any disclosure is necessary, it will be made to a responsible authority at the right time.”
According to a meeting attendee who spoke to The Indian Express, Munjal announced his resignation from the position at the CII’s National Council Meeting on Thursday. He made clear that his commitments to Hero MotoCorp’s new global sustainability fund, as well as the business itself, were the reason behind his decision to leave. Pawan Munjal, the chairman and CEO of Hero MotoCorp, resigned as the Confederation of Indian Industry (CII(designated) )’s president for 2022–2023, citing domestic and international business responsibilities. R Dinesh of the TVS Group was chosen by the industry organisation to succeed Munjal.
According to a meeting attendee who spoke to The Indian Express, Munjal announced his resignation from the position at the CII’s National Council Meeting on Thursday. He made clear that his commitments to Hero MotoCorp’s new global sustainability fund, as well as the business itself, were the reason behind his decision to leave. Ajay Sriram, the chairman and senior managing director of DCM Sriram, Vikram Kirloskar, the vice chairman of Toyota Kirloskar Motor, and Rakesh Bharti Mittal, the vice chairman of Bharti Enterprises, were among the more than 50 business leaders that attended the CII National Council Meeting. Sanjiv Bajaj, president of the CII, and Chandrajit Banerjee, director general, were also present.
The largest two-wheeler manufacturer in the nation, Hero MotoCorp, announced in March that it would launch an electric mobility brand called Vida and create a $100 million worldwide fund to support 10,000 entrepreneurs working on environmental, social, and governance solutions. Munjal had declared that he would “lead this initiative from the front” at the time.
On May 12, Dinesh and Munjal were named as the CII president-designate and vice president-designate, respectively. Sanjiv Puri, the MD and chairman of the ITC, has now been chosen as the vice president-designate for 2022–2023.
Dr. Pawan Munjal withdrew due to his obligations for his domestic and international business, according to a CII representative. A request for comments sent through email was not answered by Hero MotoCorp.
The Income Tax Department raided Hero MotoCorp’s offices on March 23, almost a week after the Punjab Assembly elections. The tax agency claimed in a statement dated March 31 that it had carried out a search and seizure operation on a “major vehicle manufacturer group” days after the searches had begun.”During the investigation, it was also discovered that a few paper firms were used to purchase 10 acres of farmland in Delhi. Over Rs. 60 crore in unaccounted cash was allegedly involved in these transactions. An important member of the group that owns the vehicle factory is the ultimate/true benefactor of the land deal. A large portion of the sale consideration was paid in cash, the intermediary who handled the trade acknowledged in his statement, according to the statement.