The promoters of Kirloskar Oil Engine Ltd. (KOEL) have taken over the day-to-day management of the company following the exit of multiple top executives.
The company’s managing director Sanjeev Nimkar resigned and exited last month, prompting the promoters to take over the running the company.
The other high-profile exits include Jay Ganjal, head of the water management solutions business and Abhay Naik, customer care and services head.
In a letter to employees, interim director-in-charge Gauri Kirloskar said, “In the board meeting that was convened post Sanjeev’s resignation, Atul Kirloskar was reappointed as executive chairman of the organisation and I was asked to supervise the day-to-day operations in the interim.” Mr. Kirloskar’s reappointment is till March 31, 2023. His daughter Ms. Kirloskar who is a non-independent, non-executive director, has been entrusted with the task of supervising the operations for six months or till the appointment of the new MD, whichever is earlier. Company officials said she is new to the executive role.
Industry watchers said her appointment by the board was questionable. J.N. Gupta, managing director, Stakeholders Empowerment Services (SES), said, “This goes against the basic definition and role of non-executive directors pronounced under the law. A non-executive director can not have day-to-day responsibility or interference in the day-to-day affairs of the company.”
“In essence, it is an executive position disguised as a non-executive position,” Mr. Gupta said. The promoter family holds about 60% stake in the company whose market cap is approximately ₹2,400 crore.
The company has reported that its electric pumps segment had made a loss in the last quarter. People close to the development said the failure of KOEL’s pump business on which the company had invested more than ₹250 crore, had triggered the exits. A detailed email seeking response from the company remained unanswered till press time and the company refused to comment through an external communications person.
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