New Delhi, July 28: Sunil Kant Munjal, joint managing director of Hero MotoCorp - the flagship of the Hero group - will step down from his position next month to "pursue new business interests".
Munjal is the brother of Pawan Munjal, chairman, managing director and CEO of the company.
In a filing to the BSE, Hero MotoCorp said: "Keeping with the core values of the Hero group as established by the late Brijmohan Lall Munjal, the members of the BML Munjal family have decided to realign their businesses to achieve future growth and expansion."
The realignment of businesses in the Munjal family began in 2010 when patriarch Brijmohan Lall had asked all family members to consolidate the various cross-holdings they had in each other's businesses.
Sources said the recent development was on the cards, and the timing is just an outcome of the fact that Sunil Kant Munjal's tenure as joint-managing director was coming to an end on August 16, 2016.
He will continue to head the other Munjal family businesses such as Hero BPO, Mindmine, Hero Realty, and Hero Corporate Service.
S.K. Munjal held 0.02 per cent stake in the two-wheeler maker as on June 30, 2016.
The official statement said Sunil Kant Munjal has expressed his desire to step down as joint managing director once his tenure comes to an end on August 16. He "intends to focus his time and energy on his independent and core businesses, and to pursue new business interests".
"This realignment will not impact the overall promoter shareholding, strategic direction or operational management of the company," the company said.
"We will continue to work in the best interest of all stakeholders of Hero MotoCorp, including shareholders, employees, suppliers and business associates," the statement said.
Sunil Kant Munjal is the youngest son of Brijmohan Lall Munjal. The succession plan of Hero MotoCorp was decided during Brijmohan Lall's lifetime with the elevation of Pawan Munjal as the chairman of the company.
In 2010, the Hero Group bought the entire 26 per cent stake of its partner Honda Motor Company Group in Hero Honda, thus breaking its 26-year-old partnership with the Japanese auto major.
In June 2010, ahead of the break-up with Honda, the Hero group decided to break up the family business empire by ending numerous cross holdings between the families of B.M. Munjal and his three brothers - OP, Satyanand and Dayanand Munjal.
The settlement awarded Hero Honda, Hero Corporate Services, Rockman Cycles Industries, Hero Mindmine Institute, Easy Bill and Hero Management Service to the B.M. Munjal family. The original business of Hero Cycles, besides some new businesses such as Hero Motors and Munjal Sales Corporation, went to O.P. Munjal.
Late Dayanand Munjal's family got Hero Exports, Hero Electric, Hero Cycles (Unit II) and Sunbeam Auto and Satyanand Munjal's family got Munjal Showa, Munjal Auto, Highway Industries, Majestic Auto and Satyam Autotech.
The owners of Hero Group had started out by selling bicycles and later went on to form the venture with Honda Motor.
