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, the company said in a statement.
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, the family agreed on a structure that serves the interests of all parties, it said.
The company’s operations will continue to be led by the two remaining promoters, Francis K. Paul and Naveen Philip. They have played the central role in shaping the Company’s strategic direction, its expansion plans and its major business decisions, and they will continue to steer its growth.
The related changes in shareholding, directorship and management responsibilities will be carried out in accordance with applicable law and the requirements of the franchisor, lenders and regulators, as relevant. The holding of John K. Paul, which is around 20 per cent, will be transferred to the two continuing promoters in multiple tranches by 31st December 2029, the company said.
This settlement will 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, it said.
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, the company said.
“This settlement reflects the strength of our family bonds and our shared commitment to doing what is right for everyone involved. We thank 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,” Naveen Philip, Managing Director, said.
