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Home arrow News arrow Business News arrow Corporate Governance and Succession planning at Anand Automotive Systems
Corporate Governance and Succession planning at Anand Automotive Systems Print E-mail
Written by Viswanath   
Saturday, 30 August 2008
New Delhi: New Delhi headquartered Anand Automotive Systems Group has in the last 5 years taken pioneering initiatives to strengthen corporate governance and ensure smooth and orderly succession planning. The Group has been professionally managed from its inception with senior executives mostly groomed from within its ranks along with need based inductions at middle and senior management levels from outside.

The Rs 3000 crore Group, founded in 1961 by entrepreneur, Mr Deep C Anand is amongst the country's largest Automotive components and systems Groups with 16 companies; mostly joint ventures with foreign automotive majors, 44 manufacturing plants in 9 states in India employing 7500 people. Group companies include well known names like Gabriel India, MAHLE Filter Systems India (Purolator), Perfect Circle India, Victor Gaskets India, Spicer India, Behr India, Mando India, Degrémont Ltd and Henkel India.

At the apex level the Group has a Supervisory Board led by Mr Deep C Anand and three independent members: Mr Ravi Uppal, Chairman of ABB India and Exec. VP of ABB Sweden, Mr Rohit Arora, Chairman of EMR Ventures, a BPO company employing 2000 people and Mr Lorenzo Piaget, partner of a Swiss fiscal and legal advisory firm. The Supervisory Board evolves long term strategy, ensures governance and safeguarding stakeholder interests and strengthens relationships with foreign partners. The Supervisory Board also appoints the professional CEO of Anand who is accountable to it.

Anand Policy Committee, comprising Anand CEO and 4 other senior professional managers decides all policy issues, approves new projects and investments and decides all organisational matters. Each of the16 companies of Anand are overseen by one of the Policy Committee members.

Anand Management Committee, comprising the 5 Policy committee members and 5 other senior executives (Chief Operating Officers) heading large companies of the Group, reviews and decides all operating issues and drives synergies, cost optimisation and productivity in the Group.

Anand has institutionalised the concept of having independent directors on the Boards of its various companies, since several decades. Some of the prominent personalities who are or have been associated with Anand in this capacity are Late Mr Henning Holck Larson, founder of Larson & Toubro, Mr RJ Taraporevala, well-known Economist, Mr BK Khare, renowned CA and Tax Consultant, Mr V Narayanan, Ex-Chairman of Goodyear India, Mr TV Mansukhani, Ex-CMD of HMT, Mr R C Bhargava, Ex-MD and the current Chairman of Maruti Suzuki, Mr Jerry Rao, Ex-Chairman and founder of Mphasis Ltd, Ms Meher Pudumjee, Chairperson of Thermax Ltd, Mr Ramesh Sareen, Ex-Vice Chairman of Voltas and ITC, Mr Ravi Sinha, Ex-CEO of SRF Ltd, Mr Kamal Khosla, Former Country Head, Tetrapak Group, Mr HR Prasad, Ex-CEO, Schrader Duncan, Mr Ranjeet Barthakur, Ex-CEO, Hutchison Max, Mr Gurdeep Singh, Ex-Director HR of Hindustan Unilever besides M/S Ravi Uppal, Rohit Arora and Lorenzo Piaget, the current Anand Supervisory Board members. Anand has had this tradition of having independent directors even though most of the Anand Companies (except Gabriel India) are unlisted where there is no legal requirement to have independent directors on the Boards.

Towards ensuring the continuance of the good governance and professionally managed model of the Group, which has been  strongly propagated and followed by its founder Mr Deep Anand all along and to ensure orderly  and smooth succession planning, Mr Deep Anand along with his wife Mrs Kiran Anand set up Deep C Anand Foundation in August,2003 . This Foundation, which was perhaps the first of its kind in India, was patterned on the lines of the Bosch, Henkel and Behr Foundations, which own globally reputed German Companies of the same names, with which Anand has been closely associated. This foundation ensures segregation of the roles of Promoters (Mr and Mrs Deep Anand, their daughter Anjali Anand Singh and son-in-law Jaisal Singh and Mr Anand's brothers M/S Jagdish and Kuldeep Anand and their families) and the professional management of Anand led by a professional CEO, Policy Committee and Management Committee. It also provides a bridge between the promoters and the management of the Group and is a vehicle for perpetuating Anand Automotive Systems businesses. While Mr Anand's daughter, Anjali and his two brothers are the beneficiaries of this Foundation, the Board of Trustees of the Foundation has a majority representation from non family trustees who are either the independent directors associated with the Group or senior professional managers who are Anand Policy Committee members. Deep C Anand Foundation has the ultimate control of the Group. Foundation bye-laws are designed to keep the promoter family together with strong disincentive for any individual beneficiary to seek separation.

These measures reflect the strong professionalism, value system (Anand Way) and foresight of the Group's Founder Mr Deep Anand which the Group has been striving to make as a way of life at Anand. With its professionalism and transparency, Anand is amongst the very few industrial Groups in the country which have made a success of its joint venture relationships.

About Anand Automotive Systems:

Anand Automotive Systems serves the global automotive industry with innovative and technologically advanced range of automotive systems from shock absorbers, struts, forks, engine bearings, automotive and industrial filters, piston rings, gaskets, axles, propeller shafts, synchronizer rings, exhaust systems, climate control, hydraulic brakes, airbrake components, friction material to car care products, adhesives, coolants, resins, sealants, machine building & vibration monitoring and water & environmental technologies. Established in collaboration with various world leaders in the automotive segment, employs 7500 people and has 44 manufacturing locations in India with an extensive customer base in OE and Aftermarket. SNS Foundation – the CSR arm of Anand – takes up developmental initiatives in places where the Group has manufacturing facilities.

 
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