After the exit of several top executives including that of its managing director, Kirloskar Oil Engines Ltd. (KOEL) said Nihal Kulkarni had resigned from the board of directors, heralding the exit of a section of the promoter’s family from the Kirloskar Group.
In a filing with the stock exchanges late on Wednesday the company said, “Late Mr. Gautam Kulkarni’s family which includes his wife Jyotsna Kulkarni, his sons Nihal Kulkarni and Ambar Kulkarni [including their respective family branches] have decided to exit from the Kirloskar Group companies to pursue their respective independent ambitions and interests, which are different and independent of the Kirloskar group businesses.”
“Nihal Kulkarni has also resigned from the Board of Directors of Kirloskar Oil Engines Limited, Kirloskar Industries Limited, Kirloskar Americas, Navasasyam Dandekar Private Limited and G.G. Dandekar Machine Works Limited with effect from February 9, 2022,” the statement added. “Consequently, Mrs. Jyotsna Kulkarni and her family members have indicated that they shall, in due course cease to be shareholders and promoters in the Kirloskar group companies,” the statement said.
KOEL said the Kirloskar group companies were in the process of making necessary filings with the appropriate authorities and the modalities of separation would be mutually be worked out among the promoter group keeping in mind the applicable laws. “We recognise the invaluable contributions made by Gautam and his family and appreciate that individual aspirations of family members could change over time,” the statement added.
The Kirloskar and Kulkarni families are related by marriage several generations back and that was how the Kulkarni family had been involved in running the Kirloskar Group of companies.
KOEL officials said more resignations were expected in the coming days, including that of a senior executive from the finance team due to unpredictability in decision-making and compatibility issues. The employees loyal to the Kulkarnis are believed to leave. KOEL did not respond to a detailed questionnaire, but referred to its filing with the exchange. “The full disclosures have been made to the stock exchanges and a press release giving the details has already been issued,” a KOEL spokesperson said.
