Swaraj Baggonkar Moneycontrol News
After 14 years at India’s third largest commercial vehicle maker Ashok Leyland Managing Director Vinod Dasari called it quits in a move that surprised the deal street.
Dasari tendered his resignation to the company’s board that met today to approve the second quarter results ended September. Dasari later clarified the decision was not a knee-jerk reaction but a planned move.
“This was not a flippant decision made as a knee jerk reaction to some issue. There was absolutely no issue. In fact, people often find times in their career where they are looking to pursue a newer interest and newer learnings. But there is never a good time (for me),” Dasari said.
The 52-year-old chief executive also admitted having contemplated resigning from his post back in 2011-12. At that time he was just promoted to the MD’s position from the position of a chief operating officer. Dasari took over the mantle from R Seshasayee who was then promoted to the position of vice chairman.
“I had considered (resigning) 6-7 years ago but at that time company was not doing that well. I wanted to make sure the company was transformed well and that we made Ashok Leyland one of the best companies in the world. And so I thought that this was the right time to do this. To do it when the company is in a very strong position and leaving it with a team which is very capable helped me take this step”, added Dasari.
Dasari’s resignation comes as a surprise as his second term as managing director was awarded to him only two years ago for a period of five years ending in 2021.
Known for his outspoken views on industry affairs including the alleged step-motherly treatment meted out by the government to the automotive industry Dasari never refrained from a debate.
From criticising the government on policy flip-flops to challenging other global automakers to design vehicles in India to accusing the Chinese government of financing their state-run bus companies to effectively compete in bus supply contracts in India, Dasari's comments have been among the strongest from the automotive industry.
Under him, Ashok Leyland progressed from a bus manufacturer to a total solutions provider including its foray into digitisation of consumer services as well as a top technology services provider.
Uncharted waters of electric vehicles, light commercial vehicles, passenger vans, small engines development, digital solutions and power solutions were tapped in to by Ashok Leyland under Dasari. The Chennai-based company bagged several orders from the Indian armed forces outbidding arch-rival Tata Motors in some cases.
Until the board of Ashok Leyland finds a new CEO over the course of next few months company Chairman Dheeraj Hinduja will play a more active role in managing its affairs.
“I will be, on the request of the board, be playing an active role on key issues along with Vinod (Dasari) during the transition. The nomination and remuneration committee will meet shortly to decide for the new CEO,” said Hinduja.
When asked if this would mean assuming greater responsibility even after the appointment of a new CEO Hinduja replied, “As a family policy (Hinduja family) the family does not take an active or day-to-day executive role in the companies. In this instance, the board requested that to ensure a smooth transition during this phase I take up the executive role. So my new role will be limited till the time a new person is appointed."
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