Baba Kalyani's son keeps Hikal board seat despite family rift

Baba Kalyani’s son’s reappointment ensures that the Kalyanis retain board representation in line with their ownership

Amit Kalyani, vice-chairman and joint MD of Bharat Forge and son of Baba Kalyani, has won shareholder approval to continue on the board of Hikal, securing an overwhelming majority of votes despite an ongoing family rift, The Times of India reported.

Interestingly, TOI noted that Amit's aunt, Sugandha Hiremath, and her family, who together control about 35% of Hikal, also voted in his favour. This support comes despite the long-running ownership tussle between the Hiremaths and the Kalyanis, who hold close to 34% in the company.

"Yes, there are differences within our family, like in many others. But these should remain apart from professional responsibilities. My husband built Hikal from scratch, supported by my father, and it has since become a strong enterprise that benefits shareholders, employees, and partners alike. This vote honours his legacy and ensures the company's growth continues for future generations. I consciously separated the personal from the professional - this reflects both our family's values and Hikal's ethos," Sugandha, who is also a non-executive director at Hikal, told The Times of India.

Voting disclosures reviewed by TOI show that 99.59% of the votes polled backed Amit's reappointment, while only 0.14% opposed it. Among promoter shareholders, 99.88% supported the resolution, while 0.04% of public shareholders voted in favour.

Without the Hiremath family's support, Amit's continuation on the board would not have been possible, despite votes from his side of the family and public investors. A chartered accountant quoted by TOI explained, "The difference between votes for and against was slim - but decisive."

The resolution was an ordinary one, needing a simple majority. Amit, 50, who has served on Hikal's board since 2012, does not participate in its daily operations. Still, as TOI highlighted, his reappointment ensures that the Kalyanis retain board representation in line with their ownership. Otherwise, they would have been reduced to the role of large investors without directorial influence, similar to the Pallonji Mistry family's position in Tata Sons, where they hold a significant minority stake but no board seat.

The Times of India also recalled that the Hiremaths had earlier opposed the reappointment of Amit's father, Baba Kalyani, to Hikal's board. Baba's 31-year association with the company's board ended in January 2024.