Financial services conglomerate Shriram Group on Tuesday announced a succession plan that entails the formation of a board of management to oversee promoters interest.

The promotership of the group has been transferred to Shriram Ownership Trust (SOT) which holds around 29.7 per cent in holding company Shriram Capital Ltd.

R. Thyagarajan, the founder of the group, said the board of management appointed by SOT has four key personnel: D.V. Ravi, managing director, Shriram Capital and R. Duruvasan, whole-time director, Shriram Capital.

The other two members are Umesh Revankar — non-executive director, Shriram Capital and vice-chairman and MD, Shriram Transport Finance Company — and Jasmit Singh Gujral, non-executive director, Shriram Capital & executive vice-chairman Shriram General Insurance Company. With the new leadership in place, Thyagarajan will mentor the board of management.

The Shriram group has assets under management of over Rs 2 lakh crore. Its listed entities Shriram Transport Finance posted revenues of Rs 17,420.45 crore in 2020-21, while Shriram City Union Finance clocked revenues of Rs 5,779 crore during the year.

“In my various interactions, I have reiterated that one individual cannot manage a large group like ours. It requires a set of individuals to drive the group’s vision and strategy. In line with my conviction, a leadership team that will oversee the SOT’s interest, as the promoter of the Shriram Group, has been constituted,” Thyagarajan said.

He said investors have been apprehensive of the succession planning in the group. They wanted greater clarity on the operation of the trust.

“Internally, we have been clear that the promoters stake in the Shriram Group, will be owned by its current and future leaders. SOT is a private discretionary Trust, which will provide an opportunity for the current and future leadership of the group to be beneficiaries of the Trust,” Thyagarajan said.