Mahindra & Mahindra (M&M), the Indian automobile major with interests in defence manufacturing, energy, and farm equipment, is revamping its senior management structure as part of a succession plan in which Anand Mahindra will transition to the role of non-executive chairman, effective April 1, 2020. Currently, he is executive chairman of the group.
Pawan Kumar Goenka, who has been reappointed managing director at M&M, will have an additional responsibility as chief executive officer (CEO) for a year, effective April 1, 2020. In an announcement on Friday, the company said M&M’s governance, nomination and remuneration committee (GNRC) undertook a board and senior management restructuring exercise. It has created the CEO position as it aims to implement its plans around electric mobility and capitalise on the synergies with Ford’s India operations in the near future.
The statement said, Anish Shah, group president (strategy) at M&M, will replace Goenka, who will retire once his term ends on April 1, 2021.
Shah, who also takes over the role of CFO from April 1, 2020, for a year, replacing V S Parthasarathy, will be appointed MD and CEO at M&M for four years beginning April 2021. His term will end in March 31, 2025.
"Mahindra will serve as a mentor and sounding board for the managing director on issues to be presented to the board, especially in the areas of strategic planning, risk mitigation and external interface. In addition, he will be available to provide feedback and counsel to the managing director on key issues facing the enterprise,” said the release.
On April 1, 2020, Rajesh Jejurikar will join the M&M board as executive director (auto and farm sectors), with direct operational responsibility and accountability for the sectors. He will report to Goenka for the transition year, and then to Shah.
C P Gurnani, MD and CEO of Tech Mahindra, will join the M&M board as non-executive director. Rajeev Dubey, group president (HR & corporate services) and CEO (after-market sector), will retire in April 2020 on reaching the age of superannuation and will continue to be associated with the group in a non-executive and advisory capacity.
V S Parthasarathy will head the mobility services sector, a new vertical being created by combining the after-market sector, Mahindra Logistics, and auto mobility services.
“This plan reflects M&M's depth of management talent and will ensure continuity in terms of culture, values, governance, and operational effectiveness. In my new role, I see myself as the conscience keeper of the Mahindra group, as the custodian of its values, and the watchdog of the interests of its shareholders. Internal audit will continue to report to me. I will continue to exercise oversight through the board,” said Anand Mahindra.
Speaking on behalf of the governance, nomination and remuneration committee of the M&M board, M M Murugappan, the panel’s chairman, said: “The GNRC interviewed internal candidates and also considered the prospect of external candidates. This thorough and rigorous process reflects the highest standards of corporate governance. We are confident the new leadership team is well equipped to perpetuate the Mahindra Rise culture.”
There are more changes on the anvil, both at the group corporate office and at the auto and farm sectors, the company said.