Just as Cairn India was settling down to a new management, MD and CEO Rahul Dhir has decided to step down effective August 31 to pursue ‘entrepreneurial interests’.
The announcement doesn’t come as a surprise to those tracking the industry closely. Speculations on Dhir’s exit were high since Anil Agarwal-led Vedanta Group became the majority stakeholder. In a statement, Cairn India has said the search for his successor is under way and an announcement is expected soon. In the intervening period, the board has appointed P. Elango, Director, Strategy and Business Services, and a member of Cairn India’s Executive Committee, as the Interim CEO.
On whether Dhir’s exit violates one of the Government’s pre-conditions for the Cairn Energy-Vedanta deal, sources said ‘no it doesn’t”, as the company’s core management team is still in place.
According to the pre-condition, post-acquisition Vedanta had to retain Cairn India’s entire management team for three years.
Rumours about Dhir’s exit gathered momentum when, earlier this year, he sold a significant portion of his shares in Cairn.
Last August, his term as CEO was extended for five years and, after the recent management change, he was retained as CEO. Dhir, who has been part of Cairn India, since its inception in 2006, is not the first one to move out.
Rick Bott, who was ED and COO, quit in June 2011, followed by ED and CFO, Indrajit Banerjee, in August 2011. David Ginger, Cairn India's Director of Exploration and New Ventures, is also on his way out.
Tipped to be appointed as CFO is Sudhir Mathur, currently CFO, Aircel.
Cairn currently produces 170,000 barrels of oil per day from its Rajasthan oil fields. It has nine blocks in India and one in Sri Lanka.
After the announcement of his exit, Rahul Dhir is understood to have said that “Cairn India is actively pursuing international ventures… farm-ins and acquisitions of exploration blocks”.