HERO REALIGNS OWNERSHIP; YOUNGER BROTHER SUNIL MUNJAL TO LEAVE
In an ownership split at USD 5-billion Hero Group, Sunil Munjal will leave the flagship Hero MotoCorp, headed by his elder brother Pawan, and will focus on some other group entities besides pursuing his other interests. The 'ownership realignment' comes within months of Hero Group patriarch Brijmohan Lall Munjal's death in November last year. After end of his tenure at the two-wheeler major on August 16, Sunil Kant Munjal 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. "With the blessings of Santosh Munjal, the matriarch of the Munjal family, Sunil Kant Munjal, Joint Managing Director, Hero MotoCorp Ltd and Chairman, Hero Corporate Service, realigns his business/partnership stake in the Hero Group," a statement issued by BML Munjal family said. As part of the realignment, 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, it added. "Our dear father, late Dr Brijmohan Lall, always encouraged us to spread our wings while we remain a close-knit family. In keeping with that spirit, all of us within the family unit unanimously believe that our diversification drive needs a further fillip in order to expedite the growth trajectory," Sunil Munjal said. Sunil is the youngest of the four Munjal siblings. "This is also an exciting time for me to consolidate and strengthen some of the existing businesses and to explore new opportunities that are close to my heart," he added. Commenting on the development, Pawan Munjal, Chairman, Managing Director and Chief Executive Officer, Hero MotoCorp Ltd, said this is a step to further stimulate the immense diversification opportunities that the Hero Group envisions for itself, while enabling family members to pursue their own aspirations.
"Sunil has been a pillar of strength and a key member of the leadership team, and we wish him all success in his new endeavours. We, at Hero MotoCorp, are grateful for his contribution during his tenure as Joint Managing Director and we will continue to draw upon his guidance in the future. We wholeheartedly endorse his decision to explore new avenues and will stand by him whenever he needs any support," he added. The realignment, to be effective from the August 16 2016, is in continuation of the restructuring process started by late Dr Brijmohan Lall, founder of the Hero Group, in May 2010, the statement said. Hero Group is a diversified business enterprise with an estimated turnover of USD 5 billion. The business ventures of the Hero Group span across sectors including two-wheelers (Hero MotoCorp), automotive components (Rockman Industries), NBFC (Hero FinCorp), renewable energy (Hero Future Energies), electronics (Hero Electronix), education (BML Munjal University), steel cold rolling (Hero Steels), insurance distribution (Hero Corporate), real estate (Hero Realty), BPO (Hero BPO) and training (Hero Mindmine). The realignment will not impact the overall promoter shareholding, strategic direction or operational management of the two wheeler major. In August 2013, the company announced plans to enter 50 markets by 2020 with a target of 20 manufacturing facilities across the globe and an overall annual turnover of Rs.60, 000 crore. It aims at getting 10 per cent of annual sales from export markets, at around 1 million units, by 2017. The company has set a cumulative sales target of 100 million units by 2020, having crossed the 50 million milestones already. Hero MotoCorp separated from Honda Motor Co. Ltd in 2011 and has augmented its global presence, selling products across various countries, including Peru, Guatemala, Turkey and Egypt and Colombia. The company has established assembly units in Kenya, Tanzania and Uganda in East Africa through its distributors. It has also set up a plant in Colombia to cater to Latin American markets. Further it plans to set up facilities at Mexico, Argentina and Brazil.
RAJAN SAYS WAS OPEN TO SECOND TERM
Days before he demits office, Reserve Bank of India (RBI) Governor Raghuram Rajan decided to finally answer questions about his socalled anti-government speeches as well as personal attacks on him. He termed the political attacks as ad hominem and said he was open to staying a bit longer to complete the unfinished work of bank clean up, but is perfectly happy to go. Rajan, who had in June decided against seeking a second term after 3-year tenure which ends next month, said the process of dialogue with the government did not reach a stage where he could have agreed to stay on. He said however that he was never worried about reappointment or a future career in government and did the best in the interest of the country and he was the "best team player". Rajan, who plans to return to academia after his term ends on September 4, said his stays at university made him "pretty thick skinned", but the attacks then were not ad hominem. "Some of these (recent) attacks were ad hominem, that is imputing sort of motives, alleging things completely without any basis," he said in television interviews adding that he put them aside and did not pay any attention to them. Towards the end of his three-year tenure, Rajan faced personal attacks from BJP MP Subramanian Swamy who had alleged that the former IMF chief economist was not "mentally fully Indian" and sent confidential and sensitive financial information abroad. Rajan said when people asked him if he was open to the second term; he said that although he had structured all his initiatives at RBI with a three-year horizon, there was some unfinished work like PSU banks' balance sheet cleanup and setting up of monetary policy committee framework. "That does not mean in any way, that I was absolutely hell bent on having a second term," he said. "I was open for staying a little while longer to see them complete, but at the same time I was perfectly happy to go." Rajan said 90-95 per cent of the job that he had taken on was complete and he had absolute freedom in doing his work. On his future plans, he said: "I have said again and again, I am fundamentally a academician. This (RBI Governor) is my side job". Asked if crony capitalists had a hand in his not getting an extension, Rajan said: "I don't think you should attribute this to some hidden hand. I feel, I have done what was needed to be done, if they had such power they would have stopped me (from doing) what was needed." Stressing that he had absolute freedom in doing, whatever he wanted to do, Rajan said this required lots of work behind the scenes, with government and persuading government. "So when people say you have been fighting all the time, absolutely not. Great relationship with previous government as well people who matter in this government...," he said. Rajan said legitimate criticism like focusing too much on inflation can be addressed and he has tried to convince public about his stand through his speeches. Stating that the country needs institutional reform to build a platform for strong and sustainable growth, Rajan cautioned against inflationary spiral in trying to push domestic demand led growth. "I keep saying, it is a no brainer to generate growth when the rest of the world is growing strong; when it is export led growth, you don't need institutional change," he said. Stressing that RBI is an entity which has conservative approach as focuses on stability, Rajan said that in taking decisions he did not worry about his future career prospects. "Wherever we had to say 'no', I have never worried about reappointment, or about whether I will have a future career in the government or anywhere else. I have said 'no' when I think it is in the best interest of the country and I think in that way, I am being the best team player that I can possibly be. If I go along just for being comfortable, I think we will be building risk for the future which will really hurt the country," he said. Asked if his talking straight attitude went against him, Rajan said: "I am not going to speculate, I think the bottom line is there was no consensus and that's where it stopped". He said after three-and-a-half years at IMF and four years in India, he did not want to label himself as a career bureaucrat, or a career technocrat. "It is more where I can implement ideas, implement reform programme. This was absolutely a job I wanted to have, we worked together as a team in the RBI, we had a fantastic team and we made great deal of difference. Did I come in with three years (in mind)? Yes absolutely... I am not saying I had in mind full stop at the end of it. But everything I wanted to do was structured for a three year horizon." On Prime Minister Narendra Modi, he said whatever he will say will be "problematic". Rajan, whose tenure at RBI has been marked with several controversies triggered by his comments on issues ranging from tolerance debate to the government's flagship programme 'Make in India', was asked to describe Modi in a televised rapid-fire like interview.
Sunil Kant Munjal, Joint Managing Director, Hero MotoCorp Ltd.
Raghuram Rajan, Governor, RBI