Several weeks after the Tata Sons board dispute, which reignited questions about shareholder power, board authority, and succession, another family-related corporate conflict is approaching a key vote.
Hikal Ltd shareholders will decide on Wednesday, September 23rd, regarding the appointment of Samir Hirematha as Chairman and Managing Director for a five-year term starting October 1st. What could have been a routine leadership transition has turned into a closely watched governance vote.
The company remains embroiled in a long-standing ownership dispute between the Hirematha and Kalyani families, while proxy advisors have taken opposing stances on advancing Hirematha.
The consulting firm InGovern recommended that shareholders vote against this appointment, citing concerns over the consolidation of Chairman and Managing Director roles in the hands of an executive from the promoter family, as well as the level of remuneration disclosure. However, Institutional Investor Advisory Services (IiAS) and Stakeholders Empowerment Services (SES) advised supporting the appointment, pointing to Hirematha's nearly thirty years of experience at Hikal and the need to ensure leadership continuity amid the departure of founder and Executive Chairman Jay Hirematha.
Hikal is a contract development and manufacturing company whose operations span pharmaceuticals and crop protection, supplying products and services to global clients.
The Hirematha family owns approximately 34.84% of Hikal shares, while Kalyani Investment Co. Ltd and BF Investment Ltd jointly control about 34.01%. The remaining approximately 31% belongs to public and institutional shareholders. Since the two promoter sides hold nearly equal stakes, voting patterns among the remaining shareholders could significantly influence the outcome.
Both families are engaged in a protracted ownership battle over Hikal. Sugandha Hirematha, sister of Bharat Forge Baba Saheb 'Baba' Kalyani, and her husband Jay Hirematha claim in court that a family agreement dating back to the 1990s required the transfer of Hikal shares controlled by Kalyani to the Hirematha side. The Kalyani side disputes this claim.
Currently, there are no public indications of how the Kalyani-controlled entities intend to vote on the matter of Samir Hirematha's appointment. YourStory reached out to Hikal and the Kalyani side for comments, but they did not respond at the time of publication.
The leadership change also comes after a challenging financial year. Hikal recorded a consolidated net loss of 49 crore rupees in FY26, compared to a profit of 91 crore rupees the previous year, with exceptional items also pressuring net profit. The quarter ending June showed signs of improvement: revenue grew year-on-year, and quarterly net loss decreased to 7.4 crore rupees from 22.4 crore rupees.
The situation at Hikal structurally differs from Tata Sons. Tata Sons is a private holding company with its own governance system, whereas Hikal is a public company where appointments are put directly to a shareholder vote. Nevertheless, both cases highlight how complex succession can become when ownership, board authority, and executive control are concentrated in different centers of influence. The Hikal Annual General Meeting will take place virtually on September 23rd at 11:30 AM.
The vote will not resolve the ownership dispute between Hirematha and Kalyani, but given the nearly identical stakes of both sides, it will serve as a visible test of how shareholder power is exercised at Hikal during the generational leadership transition.