More than six decades after he founded tractor and sports utility maker Mahindra & Mahindra (M&M) with his friend Malik Ghulam Mohammed, chairman Keshub Mahindra on Wednesday hung up his boots, passing the baton to his nephew and vice-chairman and managing director Anand Mahindra.
What started as a workshop to repair vehicles 66 years ago between two friends before Independence is now India?s largest sports utility vehicle and tractor maker by sales, with diversified interest in financial services to building special economic zones to holiday homes. Keshub Mahindra will now be chairman emeritus, a position that insulates him from the day-to-day management of the company.
Mahindra was the chairman of M&M for 48 years and director for 64 years after his friend moved to Pakistan after partition.
?By now, all of you know that after having enjoyed the privilege of serving as a director of your company for 64 years, and the honour of being chairman of the board for 48 years, I have decided to hand over the baton to the younger generation,? Keshub told his shareholders.
?The board has selected Anand Mahindra to be the next chairman,? he added. ?As you all know, Anand is a leader of great acumen, moving in step with technological advances and above all, passionate about preserving what is ?core? to the company ? integrity, ethics and inclusiveness.?
Keshub Mahindra?s successful business career had been dotted with controversies relating to government restrictions, remunerations to company directors and later the Bhopal gas tragedy in 1984, where he was the chairman of the Indian arm of Union Carbide.
The last tryst with shareholders, too, had a controversial tinge, when a shareholder and former employee Naveen Pandya sought a proposal to join the board as director under Section 252 of the Companies Act. The board and later the shareholders shot down his proposal, but Mahindra allowed Pandya to air his views.
Mahindra, giving his outlook for the economy, said, ?The economic uncertainties of 2011-12 have aggravated further in the current year, with the Indian economy facing persistent inflation, a volatile currency, the GDP growth forecasted below 6%, high interest rates, the price of oil remaining high, and the threats by the rating agencies to downgrade the country?s rating.?
?The risks of a full fledged crisis in Europe remains high, Greece is in a dire state, Spain is showing signs of recession and Italy is showing unacceptable figures of stability,? Mahindra said. ?China is showing signs of slowing down; oil markets are in a flux. At the same time, weak domestic macros like high inflation, large fiscal and current account deficits and coalition politics that continue to constrain policy actions critical to supporting growth ? for any growth below 7% cannot even begin to meet our social needs.?
He also urged shareholders to support the government in reform measures. ?I make a plea that all of us who are outside the stream of government must assist and support the policies enunciated and ensure to the best of our ability that all political parties move with one objective of creating an environment in which the economic growth of our country continues,? he said.