Sunil Kant Munjal has decided to bow out as the joint managing director of Hero MotoCorp, the country’s largest two wheeler maker, five years after he was appointed to the post.
In 2011, after Hero and its Japanese partner, Honda, parted ways, he was elevated to this position. Till then, he was a non-executive director on the board of Hero Honda.
Munjal, now 55, will pursue new business interests and lead Hero Corporate Services as its chairman.
A statement from the family said Munjal will realign his business and partnership stake in the Hero group with the “blessings of Santosh Munjal, his mother and wife of Brijmohan Lall Munjal, the founder of the group.
Brijmohan died last year. “He will focus on some of the other group businesses, including Hero Corporate Service and its allied companies as the chairman, while he also pursues new business interests,” said the statement.
An announcement to stock exchanges said Munjal intends to focus his time and energy on his independent and core businesses, and to pursue new business interests.
“He has… expressed his desire to step down from the board of directors, once his tenure comes to an end on August 16,” Hero MotoCorp said in the communication.
Hero Corporate Services was incorporated in 1995. It ventured into steel ancillaries in 2000, and two years later, started information technology-enabled services. In 2004, the company launched a business process outsourcing and an insurance distribution business, followed by a real estate business in 2005.
In the following years, it set up industrial parks and expanded the steel business. The steel business caters to requirements of Hero MotoCorp and Hero Cycles among other customers.
Its realty business also made industrial parks spread over 400 acres in Uttarakhand (near Hero’s two-wheeler plant) which now houses many of Hero’s component suppliers.
It has also made a couple of residential projects. Another company, Hero MindMine, operates through 125 offices and learning centres and has trained over 250,000 professionals.
The revenue of Hero Corporate Services is not known but it will be a fraction of Hero MotoCorp’s Rs 28,600 crore (FY15).
Sunil, youngest among the four sons of Brijmohan Lall, has a daughter, Shefali.
She is an executive director with Hero Corporate Services.
Brijmohan Lall had stepped down as the chairman in June. That made Pawan Munjal the chairman, managing director and chief executive officer.
Pawan had been the managing director and CEO since 2001, when Hero (then Hero Honda) had become the largest two wheeler maker globally.
Hero said this realignment will not impact the overall promoter shareholding, strategic direction or operational management of the company.
“We will continue to work in the best interest of all stakeholders of Hero MotoCorp, including shareholders, employees, suppliers and business associates,” the statement said.
A former executive of Hero said Sunil had been an interface of the group with the governments at centre and states. Sunil had also served as a president of industry body Confederation of Indian Industry.
He is also the founder chairman of BML Educorp Services and is the guiding force behind the BML Munjal University. He played a key role in helping create a unique higher education initiative for the group.