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The Nationalist, Witty and a Genius Anand Mahindra is set to step down as Group Chairman

A legend of the Business world

Amit Agrahari by Amit Agrahari
22 December 2019
in Opinions
mahindra, anand

(PC: Reuters)

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Anand Mahindra, Chairman of Multinational conglomerate Mahindra Group, has announced that he will be transitioning from the role of executive chairman to non-executive chairman. From the next financial years, that is April 2020, Pawan Kumar Goenka- the Managing Director of the Group, will bear the additional responsibilities of chief executive officer (CEO). 

“Delighted to announce our leadership transition plan which reflects the Group’s commitment to good governance. I am grateful to the board & nominations committee for conducting a diligent & rigorous year-long process that will ensure a seamless transition,” tweeted Mahindra, who is among most social media savvy corporate leaders. 

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Delighted to announce our leadership transition plan which reflects the Group’s commitment to good governance. I am grateful to the board & nominations committee for conducting a diligent & rigorous year-long process that will ensure a seamless transition https://t.co/iw34PPxmCg

— anand mahindra (@anandmahindra) December 20, 2019

“Mahindra will serve as a mentor and sounding board for the managing director on issues to be presented to the board, especially in the areas of strategic planning, risk mitigation and external interface. In addition, he will be available to provide feedback and counsel to the managing director on key issues facing the enterprise,” said the press release from the group. 

Mahindra Group was established in 1945 by the brothers J. C. Mahindra and K. C. Mahindra and Malik Ghulam Muhammad (who later became first finance minister of Pakistan) in Ludhiana, Punjab. The group’s primary presence was in steel trading and automotive sector but later diversified in farm equipment; financial services; and Information technology. 

Ownership of Mahindra tractors became a symbol of rising farmer’s income in the country; and that of Green revolution. The 20.7 billion dollars group with more than 2 lakh employees operates in various sectors, from agribusiness to defence, education, hospitality, and real estate. The Group has more than 150 companies and enjoys presence in 100+ countries. 

Anand Mahindra, who played a crucial role in the diversification of the group’s interests, has always maintained that it is not a family business. A few years ago, when asked, “Why your daughters haven’t joined the family business?”, Mahindra replied, “We don’t view Mahindra as a family business. My grandfather and granduncle started it in a wave of patriotism in 1945 and saw themselves as custodians of public money and trust. So, we’ve never viewed ourselves strictly as a family company.” 

Born in 1955 in erstwhile Bombay state, Mahindra was educated at Lawrence School, Lovedale, and later joined Harvard University for graduation and filmmaking. He later completed an MBA degree from the same university in 1981. In 1981, he joined Mahindra Steel as Executive Assistant to the Finance Director, where he was promoted to President and Deputy Managing Director in 1989. In 1991, he was appointed as Deputy Managing Director of Mahindra and Mahindra Limited, and later took over as MD of the company in 1997. 

In August 2012, he took over the role of chairman of the board from his uncle- Kesub Mahindra. He is also a co-promoter of Kotak Mahindra Bank and has been recognized as the face of Indian Capitalism by various national and international media outlets. He was named as ‘Entrepreneur of the Year’ by Forbes India in 2013.

Since the announcement of vacating the driver’s seat, the corporate India has showered praise for the businessman, who is nationalist to the core and dreams of India becoming a Global Superpower in his lifetime. Sangeeta Reddy, joint managing director, Apollo Hospitals Group, described Mahindra as a person with “the most amazing combination of a fine mind, a fine administrator and a good human being”.

Mahindra is a visionary leader, who has diversified the group’s interest according to the consumer needs. Almost four years ago on September 10, 2015 veteran entrepreneur and Mahindra Group chairman made a prophetic statement about the automotive industry. “The age of access being offered by taxi-hailing apps like Uber and Ola is the biggest potential threat to auto industry,” said Mahindra. “A lot of youngsters who can own vehicles today don’t want to own one, but only need access to transportation,” he added. Since then, the company has made investment in the ride-sharing startups, to remain competitive in new-age services. 

A believer in PM Modi, on the 2019 election victory of BJP Mahindra tweeted, “Size of the country (Land mass+population) X Size of the Economy X Size of the election mandate = Leader’s Power Quotient. By the measure of this crude formula, @narendramodi is about to become the most powerful, democratically elected leader in the world today…”

Size of the country (Land mass+population) X Size of the Economy X Size of the election mandate = Leader’s Power Quotient. By the measure of this crude formula, @narendramodi is about to become the most powerful, democratically elected leader in the world today…

— anand mahindra (@anandmahindra) May 23, 2019

Anand Mahindra is the conscience keeper of Indian capitalism. He has set an example by bringing a non-family member in the top executive position of the company, which is rare among the Indian corporates. 

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