Managing Change at the Kuttukaran Group
By Nupur Bang, Bharagavi Mantravadi, Kavil Ramachandran
World Scientific Publishing Company Limited | December 2020
World Scientific Publishing Company Limited | December 2020
DOI
www.worldscientific.com/worldscibooks/10.1142/12051
Citation
Bang, Nupur., Mantravadi, Bharagavi., Ramachandran, Kavil. (2020). Managing Change at the Kuttukaran Group World Scientific Publishing Company Limited www.worldscientific.com/worldscibooks/10.1142/12051.
Copyright
World Scientific Publishing Company Limited, 2020
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Abstract
K.P Paul established Popular washing home (laundry services) in 1939 in Trichur, Kerala, a State in the South of India. Without much formal education and humble financial background, he sailed against all odds and could make his business profitable. The entrepreneurial spirit imbibed in him by his mother and his interest in automobiles made him set foot in the automobile industry. He evolved as one of the most successful entrepreneurs managing Rs.15 billion worth business conglomerate in 2007 (The year he passed away). After decades of growth and expansion, the overall group was a business house with a turnover of Rs.42 billion in 2019.
During 1980’s, K.P. Paul withdrew himself from the front-line activities and ensured smooth transition to his sons John. K. Paul and Francis.K. Paul. John. Francis decided to enter automobile dealerships in 1980’s. Their foresight of dealerships turning out to be a disruptor in the industry became a reality. Since then the group predominantly focused on the automobile sector while education and empowerment remained as non-profit ventures. The flagship company of the group is Popular Vehicles and Services Ltd. Most of the group's revenue came from the automobile sector.
Naveen Phillip, Son of Leela Phillip (daughter of K.P. Paul) joined the group in 1997. He was the first person in the third generation to join the group. Francis, John, and Naveen formed the prime pillars of the business. They held 65.79 percent of group shares in equal proportions. A private equity investor M/s Banyan Tree Growth Capital II LLC was brought in to increase working capital in December 2015 and 34.01 percent of shares were divested to them by the family. The rest 0.20 percent were with other individuals.
In order to mitigate the differences in generational outlooks, manage unexpected successions, adapt to gender and societal changes, facilitate retirement planning and foster entrepreneurship, the family signed and adopted the Family Constitution. This led to the formation of various governance systems such as Family Business Board, Family Council, Limited Liability Partnership, Family Trust and Family Fund. John was considering further strengthening of the constitution and its implementation in spirit to be prepared for the changes that the future may hold.
During 1980’s, K.P. Paul withdrew himself from the front-line activities and ensured smooth transition to his sons John. K. Paul and Francis.K. Paul. John. Francis decided to enter automobile dealerships in 1980’s. Their foresight of dealerships turning out to be a disruptor in the industry became a reality. Since then the group predominantly focused on the automobile sector while education and empowerment remained as non-profit ventures. The flagship company of the group is Popular Vehicles and Services Ltd. Most of the group's revenue came from the automobile sector.
Naveen Phillip, Son of Leela Phillip (daughter of K.P. Paul) joined the group in 1997. He was the first person in the third generation to join the group. Francis, John, and Naveen formed the prime pillars of the business. They held 65.79 percent of group shares in equal proportions. A private equity investor M/s Banyan Tree Growth Capital II LLC was brought in to increase working capital in December 2015 and 34.01 percent of shares were divested to them by the family. The rest 0.20 percent were with other individuals.
In order to mitigate the differences in generational outlooks, manage unexpected successions, adapt to gender and societal changes, facilitate retirement planning and foster entrepreneurship, the family signed and adopted the Family Constitution. This led to the formation of various governance systems such as Family Business Board, Family Council, Limited Liability Partnership, Family Trust and Family Fund. John was considering further strengthening of the constitution and its implementation in spirit to be prepared for the changes that the future may hold.