Anand Mahindra to be non-executive chairman
New Delhi: Mahindra & Mahindra (M&M) on Friday announced a rejig of its top management with Anand Mahindra, 64, transitioning to the role of non-executive chairman from executive chairman, effective April 1, 2020.
In a statement, the firm said Pawan Kumar Goenka has been re-appointed as the managing director with additional responsibilities of chief executive officer (CEO) for a year, effective April 1, 2020.
The company 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.
Anand Mahindra had taken over as the Chairman of the USD 20.7 billion group, which has presence in sectors ranging from farm equipment to software and aerospace in August 2012 following the retirement of his uncle Keshub Mahindra after leading the conglomerate for 45 years.
During his tenure, the group went for expansion in both domestic and international markets in various sectors, including automobiles and agriculture to IT and aerospace.
He also led the M&M group in major acquisitions both on home front and globally, including those of Ssangyong Motors, Reva Electric Car Company, Satyam Computer Services, Peugeot Motorcycles, Gippsland Aeronautics, Aerostaff Australia, Holiday Club Resorts, and Pininfarina S.p.A.
Commenting on the changes, Mahindra said, "This plan reflects M&M's depth of management talent and will ensure continuity in terms of culture, values, governance and operational effectiveness."
He further said, "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."
Goenka, who joined M&M as General Manager (R&D) after his stint in General Motors' R&D Centre in Detroit in 1993. He led the development of the Scorpio, the company's highly successful SUV.
He rose through the ranks to become managing director of M&M in November 2016. Prior to that he held several positions in the group's automotive sector. He was appointed COO (Automotive Sector) in April 2003, President (Automotive Sector) in September 2005, President (Automotive & Farm Equipment Sectors) in April 2010, Executive Director and Group President (AFS) in April 2015.
In other top management changes, M&M said Anish Shah will transition to become Managing Director and CEO on April 2, 2021, replacing Goenka, who will retire after his term ends. Shah will join M&M board as Deputy Managing Director and Group CFO, replacing V S Parthasarathy, the current CFO.
Shah, currently the Group President (Strategy) for the Mahindra Group and a member of the Group Executive Board, is responsible for strategy development and implementation besides building capabilities such as digitisation, IoT and analytics. He is also responsible for enabling synergies across group companies and driving international growth. Before joining M&M, he was earlier President and CEO of GE Capital India.
M&M said its current group 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.
The company also said Rajesh Jejurikar, currently President Farm Equipment Sector, will join the M&M board as Executive Director (Auto and Farm Sectors), with direct operational responsibility and accountability for the sectors, reporting to Goenka for the transition year and then report to Shah from April 2, 2021 onwards.
Tech Mahindra Managing Director and CEO C P Gurnani will join M&M Board as a non-executive Director on April 1, 2020, it added.
Group President (HR & Corporate Services) & CEO (After-Market Sector) Rajeev Dubey will retire on April 1, 2020 on reaching the
of superannuation. He will continue to be associated with the Group in a non-executive and advisory capacity, M&M said.
Ruzbeh Irani will head Group HR and communications, which includes CSR, Ethics and CIS, it added.
M&M Governance, Nomination & Remuneration Committee (GNRC) of the Board of Directors M M Murugappan (GNRC Chairman) said the committee interviewed internal candidates and also considered the prospect of external candidates.