Passing the baton to his son Pawan Munjal, top industrialist Brijmohan Lall Munjal today stepped aside as Executive Chairman of two-wheeler giant Hero MotoCorp to take up an non-executive role.
While 92-year-old Brijmohan Munjal has become Chairman Emeritus of over USD 4 billion group and would remain on the board as a non-executive member, Pawan Munjal has taken over as Chairman, Managing Director and CEO.
The changes have been approved by the board and came into effect today, the company said in a statement.
Lall has been the Chairman of Hero MotoCorp since its inception in 1984 as a joint venture with Japan's Honda.
"With this transition, the top leadership succession plan, which was initiated in August last year with the elevation of Munjal as Vice Chairman, has come to its logical conclusion," the company said.
Pawan Munjal had assumed the role of MD and CEO in 2001 at Hero, the world's largest two-wheeler manufacturer in terms of unit volumes sold in a calendar year.
Hero said Brijmohan Lall had expressed a desire to relinquish his duties as the Executive Chairman of the company,.
"While accepting his offer, the Board requested him to continue to be the guide and mentor of the company in the form of Chairman Emeritus, which he accepted," it added.
In December 2010, the Indian promoter of the two-wheeler maker, the B M Munjal family, had agreed to buy out the entire 26% stake of Honda in Hero Honda for Rs 3,841.83 crore.
Hero MotoCorp commands over 50% share in the domestic motorcycle market and it sold record 6.63 million units two-wheelers in the fiscal ended March 31, 2015 -- its highest-ever annual sales.
The company recorded total turnover of Rs 27,585 crore and net profit after tax of Rs 2,386 crore in the last fiscal.
