Hikal sees an interesting development after feuding Kalyanis, Hiremaths bury the hatchet briefly

In an interesting development, shareholders of specialty chemicals maker Hikal have approved the reappointment of Amit Kalyani, vice-chairman and joint managing director of Bharat Forge, to its board with near-unanimous support. The decision is being seen as kind of curious not only for its overwhelming mandate but also because it came with the backing of his warring aunt, Sugandha Hiremath,and her family, who control roughly 35% of Hikal, The Times of India reported on September 24.

The vote comes against the backdrop of an ongoing ownership dispute between the Hiremath and Kalyani families, who hold almost equal stakes in the company -- 35% and 34% respectively, ToI's report (by Reeba Zachariah) said.

Explaining her decision, Sugandha, who is also a non-executive director at Hikal, stressed that family differences should not interfere with corporate governance.


“My husband built Hikal from the ground up, with the support of my father. It has evolved into a strong company over time, creating value for shareholders, employees and partners. This vote honours that legacy, ensuring the company he nurtured continues to thrive for generations. I consciously separated the personal from the professional,” she said.

Her stance marked a contrast to her family’s position earlier this year, when they voted against the reappointment of Amit’s father, Baba Kalyani. His 31-year tenure on Hikal’s board came to an end in January 2024.

According to the results, 99.59% of votes supported Amit’s continuation, while just 0.14% opposed it. Among promoter shareholders, 99.88% backed him, as did 0.04% of public shareholders.

Analysts noted that without the Hiremath family’s support, Amit’s reappointment would have been uncertain, despite backing from the Kalyanis and other shareholders.

“The difference between those for and against the resolution would have been very slim. But they matter,” a chartered accountant familiar with corporate voting practices told ToI.

As an ordinary resolution, Amit’s reappointment required a simple majority of the votes polled.

Amit, 50, has served on Hikal’s board since 2012. While he has no role in its day-to-day operations, his presence ensures the Kalyani family retains representation proportional to its shareholding.

Without a board seat, their position would be comparable to that of the Pallonji Mistry family in Tata Sons -- a large and long-standing shareholder without a directorship.