(Image Source: Business Today)
The landscape of Indian corporate leadership is shifting once again. In a move that has caught the attention of investors and industry veterans alike, Vellayan Subbiah is set to exit Cholamandalam Investment and Finance Company (Chola).
While the headline might suggest a simple retirement, the story beneath the surface is one of legacy, family values, and a meticulously crafted Murugappa family settlement designed to future-proof one of India’s most respected conglomerates.
The Strategy Behind the Murugappa Family Settlement
For over a century, the Murugappa Group has been a pillar of the Indian business ecosystem, known for its “conservative yet consistent” growth. However, as the fourth and fifth generations come of age, the family has prioritised a clear restructuring of ownership and management.
The exit of Vellayan Subbiah from the board of Cholamandalam Finance is not a sign of discord, but rather a strategic step in the Murugappa Group family arrangement. This settlement aims to:
- Decouple Management from Ownership: Ensuring that each family branch has a clear mandate over specific business verticals.
- Foster Professionalism: Allowing seasoned professionals like Ravindra Kumar Kundu (the current Managing Director) to lead the daily operations while the family focuses on long-term strategy.
- Maintain Amity: Resolving long-standing disputes, including the high-profile case involving Valli Arunachalam, to ensure “business as usual” for shareholders.
The Vellayan Subbiah Legacy: Turning Gold into Growth
To understand the weight of this exit, one must look at Subbiah’s track record. A McKinsey alumnus and a visionary leader, Vellayan Subbiah is often credited with the “Midas Touch” within the group.
During his tenure, Cholamandalam Investment and Finance didn’t just grow; it transformed. From navigating the complexities of the NBFC sector to scaling the company’s Assets Under Management (AUM) to record highs, his leadership has been synonymous with stability and innovation.
But his work doesn’t stop here. While he exits Chola, Subbiah remains at the helm of other critical pivots within the group, most notably Tube Investments of India (TII) and the high-growth CG Power, where he is leading India’s charge into the semiconductor and electric vehicle (EV) sectors.
What This Means for Investors and the NBFC Sector
Change at the top often triggers market anxiety, but the transition at Chola Finance appears remarkably smooth.
- Leadership Continuity: With Ravindra Kumar Kundu taking over the reins for a five-year term, the company is in the hands of a veteran with over 36 years of experience.
- Growth Trajectory: The company’s recent Q2 FY26 results show a robust AUM growth of 21%, signalling that the operational engine is running at full throttle despite the board-level changes.
- Institutional Trust: By resolving family disputes amicably, the Murugappa Group has sent a strong signal to FIIs and DIIs that governance remains its top priority.
A Human Perspective on Corporate Shifts
At its heart, this is not just a story about share swaps or board seats; it’s a story about a family choosing harmony over ego. In an era where many family-run businesses crumble under the weight of internal strife, the Murugappa family is setting a benchmark for how to “split the kitchen” without “burning the house down.”
Vellayan Subbiah’s exit from Cholamandalam is the closing of one chapter. Still, it allows him and the group to focus on the next big frontier: making India a global hub for technology and clean energy.
