The Murugappa Group announced on Sunday that the family had settled all the disputes and differences between the eldest daughter of the former chairman Lt M V Murugappan, Valli Arunachalam, and the rest of the family members.

The discussions of family arrangement between the two sisters, Valli Arunachalam and Vellachi Murugappan, on one side and the rest of the family members, on the other, took place in the presence of the respective advisors. Following the discussion, both factions signed a Memorandum of Understanding.  

According to the exchange filing by several of the group’s listed companies, the necessary transactions to implement the agreed arrangement will come into effect within the next 90 days.

The statement cited that the family arrangement ensures the amicable settlement of all the issues between the members and that the terms of the arrangement are confidential. The family members are committed to fulfilling the arrangement to maintain the overall harmony within the Murugappa family, in this and the upcoming generations.

The involved parties have also agreed to withdraw all legal proceedings against each other after all the agreed steps in the family arrangement have been completed as part of the settlement. 

The dispute involved the denial of a seat on the board of the group’s holding company, Ambadi Investments Ltd (AIL), to M V Murugappan’s eldest daughter, Valli Arunachalam. She sent legal notices to the Murugappa family members and management of AIL in October 2020 after shareholders rejected her proposed appointment to the board.

M V Murugappan served as the executive chairman of the family business for over two decades until he passed away in 2017. He had two daughters, Valli and Vellachi, and was the only elder on the board with no sons. 

Valli said that her family had visibility into the functioning of the business when her father was alive and accused her and cousin brothers of denying her a rightful place within the conglomerate because of her gender.

The filing stated that nothing in the family arrangement relates to the management of or grants any special rights to the pares in any listed company of the Murugappa Group. Even though no listed company of the Murugappa Group is a party to the family arrangement, the market participants saw the development as a positive. 

The companies include Carborundum Universal, Cholamandalam Financial Holdings,  Cholamandalam Investment, Coromandel Engineering, Coromandel International, EID-Parry (India), Tube Investments, Kartik Investments, CG Power, Shanthi Gears and Wendt (India).