Baba Kalyani’s son seeks board seat again but aunt may oppose

The simmering ownership dispute within the Kalyani-Hiremath family has resurfaced as Amit Kalyani, son of Bharat Forge chairman Baba Kalyani, seeks re-election to the board of Hikal Ltd—a specialty chemicals and pharmaceuticals company co-founded by the family. The reappointment bid, which comes under an ordinary resolution, is expected to face stiff resistance from Amit’s aunt, Sugandha Hiremath, who currently serves as a non-executive director on the board and holds a significant stake in the company.

Amit Kalyani, 50, has served on Hikal’s board for over 13 years and is now seeking to continue as a non-executive, non-independent director. His reappointment is subject to shareholder approval, with remote e-voting scheduled to close on Monday and results expected post the Annual General Meeting (AGM) on Tuesday. While Baba Kalyani and his family, who collectively hold 34% of Hikal’s shares, are expected to support Amit’s candidacy, Sugandha and her family—who own approximately 35%—are reportedly preparing to vote against it.

This internal rift has drawn attention from institutional and retail investors, who hold the remaining 31% of the company’s shares. Their votes could prove decisive in determining the outcome of Amit’s reappointment, especially given the precedent set in December 2023 when Baba Kalyani himself failed to secure enough votes to retain his board seat, ending a 31-year tenure at Hikal.

Hikal Boardroom Dynamics – Shareholding Breakdown

The tension between the two factions stems from a longstanding disagreement over Hikal’s ownership and governance. Hikal was founded by Sugandha’s husband, Jaidev Hiremath, with seed capital from their father, who also backed Baba Kalyani’s industrial ventures. Shares were initially issued to Surajmukhi, an entity owned by the patriarch, with an understanding that they would eventually be transferred to the Hiremaths. However, the transfer never materialized, leading to decades of friction.

In September 2024, Sugandha retained her board seat with the backing of institutional and retail shareholders, despite opposition from the Kalyani camp. This marked a turning point in the family’s corporate power struggle, with both sides now vying for influence over Hikal’s strategic direction.

Timeline of Key Events in Hikal Ownership Dispute

Shareholder advisory firms have issued contrasting recommendations on Amit’s candidacy. Stakeholders Empowerment Services (SES) has advised voting in favour, citing his experience and alignment with promoter interests. In contrast, Institutional Investor Advisory Services (IIAS) has recommended voting against, urging both factions to resolve their ownership dispute before seeking board positions.

“We note that the promoters are involved in a dispute regarding Hikal’s ownership. We expect them to relinquish their board positions, resolve the ownership dispute, and then seek reappointments to protect the overall functioning of the company and safeguard shareholder interests,” IIAS stated in its advisory.

Amit Kalyani recently resigned from his role as an independent director on Schaeffler India’s board, citing “other professional commitments.” He currently serves on the boards of Bharat Forge, Kalyani Steels, and three other companies. While SES acknowledged concerns about his multiple directorships, it noted that all positions are within the same promoter group and do not raise major red flags.

Amit Kalyani’s Board Positions – Current Status

The outcome of the vote will not only determine Amit’s future on Hikal’s board but could also signal the direction of the company’s governance model. With both promoter factions entrenched in their positions, the role of independent shareholders has become increasingly critical.

Industry observers believe that the prolonged dispute could impact Hikal’s strategic agility and investor confidence. “Boardroom battles are never good for business. The company needs clarity and cohesion at the top,” said a Mumbai-based analyst tracking the chemicals sector.

Hikal, which operates in pharmaceuticals, crop protection, and specialty chemicals, has seen steady growth in recent years. However, internal governance challenges have cast a shadow over its long-term prospects. Investors are now watching closely to see whether the company can rise above family feuds and focus on operational excellence.

Hikal Ltd – Business Snapshot

As the e-voting window closes and the AGM approaches, all eyes are on the final tally. Whether Amit Kalyani secures his board seat or faces rejection like his father, the result will shape the next chapter in Hikal’s corporate saga.

Disclaimer: This article is based on publicly available shareholder reports, media coverage, and corporate filings. It does not reflect any political stance or endorsement. All quotes are attributed to public figures and institutions as per coverage. The content is intended for editorial and informational purposes only.