Family Settlement Details
Popular Vehicles and Services Limited announced an amicable family settlement agreement among its promoter family. Under this settlement, one of the three promoters, Mr. John K. Paul, will step away from the Company's businesses to pursue other opportunities outside the existing enterprise effective from October 1, 2026.
The settlement was reached in a spirit of mutual understanding and respect to preserve family unity and long-term goodwill, giving each member freedom to pursue individual goals.
Leadership Continuity
The Company's operations will continue to be led by the two remaining promoters, Mr. Francis K. Paul and Mr. Naveen Philip, who have played central roles in shaping the Company's strategic direction, expansion plans, and major business decisions. They will continue to steer the Company's growth.
Shareholding Changes
Mr. John K. Paul's holding of approximately 20% will be transferred to the two continuing promoters in multiple tranches by December 31, 2029. Related changes in shareholding, directorship, and management responsibilities will be carried out in accordance with applicable law and requirements of franchisor, lenders, and regulators.
Operational Impact Assurance
The settlement will have no impact on the Company's day-to-day operations, franchise arrangements, or commitments to customers, employees, franchisors, vendors, lenders, and other business partners. All existing outlets and operations will continue as usual, and the Company's growth plans remain on track.
Intellectual Property and Brand Usage
The trade names "Kuttukaran" and "Popular" will continue to be used by the family members. The Company's present logo will remain with the Company and will not be transferred, even if the family were to transfer this business to any other person in the future.
Non-Compete Agreement
Under the settlement, the outgoing promoter has agreed not to engage, directly or indirectly, in any business that competes with the franchise operations of the Company and its group entities at their existing places of business, on terms agreed between the parties.
Management Commentary
Mr. Naveen Philip, Managing Director, commented: "This settlement reflects the strength of our family bonds and our shared commitment to doing what is right for everyone involved. We thank Mr. John K. Paul for his contributions over the years and wish him every success in the future. Our focus remains on delivering quality and value to our customers, partners and employees."
Company Background
Popular Vehicles and Services Limited belongs to the diversified Kuttukaran Group, operating multi-brand automobile dealerships in Kerala, Tamil Nadu, and Karnataka for the past 70 years, with expansion into Maharashtra in FY23 and Punjab, Telangana, and Andhra Pradesh in FY26. The company operates 211 showrooms & sales outlets, 31 pre-owned vehicle showrooms, 173 authorized service centers, 54 retail outlets, 24 warehouses, and 10 driving schools across seven states.