Munjals split family business among kin

The agreement to divide the group was reached last week and was based on a simple principle of ending the numerous cross holdings between the families of B M Munjal and his three brothers — O P Munjal, Satyanand Munjal and Late Dayanand Munjal.
Sources said it is only a mere ending of cross holdings in the companies in order to keep the businesses running smooth when it will be handled by future generation. “It seems like an intelligent move as all the family members would get significant businesses to run,” a source in the know of the development said.

As a result, financial companies on behalf of B M Munjal and his sons — Suman, Pawan, and Sunil, will hold 26 per cent stake in Hero Honda, a joint venture where Japanese Partner Honda Motor Co holds another 26 per cent and the balance is with public and financial institutions. The Hero Group, which officially came into existence in 1956, had started its activities in early 1940s as a bicycle maker by the four brothers. The group has over 20 firms, most of which are related to the two-wheeler industry.