Anand Mahindra has stepped down as the Executive Chairman of the car-making subsidiary Mahindra and Mahindra (M&M) of the $21 billion Indian multinational conglomerates Mahindra Group.
Mahindra has been redesignated as a Non-Executive Chairman of the group, in the massive reshuffle as the company prepares for succession planning. However, he will continue to serve as Chairman of the other companies like IT arm -- Tech Mahindra.
As part of the succession plan, the current Managing Director of M&M, Pawan Kumar Goenka will be re-designated as Managing Director and the Chief Executive Officer of the company from April 1, 2020. However, as Goenka retires on April 1, 2021, he will serve in his new position for only a year, after which, Anish Shah will take over the reins of the company.
The tenure of Goenka is, however, divided into two parts -- lasting from April-November and November-April, owing to the contractual obligation.
Shah, who is currently the Group President (Strategy), will take charge as the Chief Financial Officer (CFO) of the company from April 1, 2020, to April 1, 2021 (both days inclusive) in place of V S Parthasarathy who is currently the CFO. Parthasarathy will head the Mobility Services Sector, which is a new sector being created by combining the After-Market Sector, Mahindra Logistics, and Auto-Mobility Services.
During the Goenka's tenure, Shah, other than being the CFO of the company would also be appointed as the Deputy Managing Director of the company. His tenure as the chief of the M&M, which starts with Goenka's retirement, will last for four years till 2025.
Other than this major reshuffle, the company has gone about three more changes in its organisational setup. Rajesh Jejurikar, currently serving as President — Farm Equipment Sector, will be appointed as an Additional Director of the company from April 1, 2020, to hold office up to the date of the next Annual General Meeting (AGM) of the company.
Jejurikar will also be appointed as Whole-time Director of the company designated as 'Executive Director (Automotive and Farm Sectors)' for a period of five years from April 1, 2020.
C P Gurnani, the CEO of Tech Mahindra has also been drafted in as an Additional Director of the M&M from April 1, 2020, to hold office up to the date of the next AGM. Gurnani will then be name as the Non-Executive, Non-Independent Director.