Promoter family announces amicable settlement; one of three promoters steps away from the business

Amicable family settlement by the promoter family.

Mon 5 Oct 2026

Promoter stepping away

Mr. John K. Paul, one of the three promoters, steps away from the Company's businesses

Effective date of exit

1st October 2026

Holding to be transferred

around 20%

Transfer completion deadline

31st December 2029

Continuing promoters

Mr. Francis K. Paul and Mr. Naveen Philip

Promoter family settlement: what was announced

Popular Vehicles and Services Ltd has announced an amicable family settlement among its promoter family. Under this, 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 1st October 2026.

The release states the settlement was reached in a spirit of mutual understanding and respect, to preserve family unity and long-term goodwill and to give each member the freedom to pursue his or her own goals.

Who runs the business

• The Company's operations will continue to be led by the two remaining promoters, Mr. Francis K. Paul and Mr. Naveen Philip.
• They have played the central role in shaping the Company's strategic direction, its expansion plans and major business decisions, and will continue to steer its growth.
• The related changes in shareholding, directorate and management responsibilities will be carried out in accordance with applicable law and the requirements of the franchisor, lenders and regulators, as relevant.

The shareholding part

• Mr. John K. Paul's holding, which is around 20%, will be transferred to the two continuing promoters in multiple tranches by 31st December 2029.

Business continuity

• The settlement is stated to have no impact on the Company's day-to-day operations, its franchise arrangements, or its 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.
• 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 undertaking

• 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 the terms agreed between the parties.

Management comment

Mr. Naveen Philip, Managing Director, said the settlement reflects the strength of the family's bonds and a shared commitment to doing what is right for everyone involved. He thanked Mr. John K. Paul for his contributions over the years, wished him success, and said the focus remains on delivering quality and value to customers, partners and employees.

Scale of the business as described in the release

• 211 showrooms & sales outlets and booking offices
• 31 pre-owned vehicle showrooms and outlets
• 173 authorized service centers
• 54 retail outlets
• 24 warehouses
• 10 driving schools
• Operations scaled up across seven states over the past 70 years

What to track

The transfer of around 20% promoter holding to the two continuing promoters in multiple tranches by 31st December 2029, along with the related changes in shareholding, directorate and management responsibilities, are the moving parts of this settlement.

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