Royalty is not good enough. I have serious concerns on the following grounds (which I also mentioned in the email to Mr. Phansalkar):
- The CSIR partnership tp develop H fuel cell tech was with KPIT as per CSIR’s official releases from 2 years back. How, when, and why did this partnership shift to a entity apparently privately owned by the management?
2 The Ravi Pandit interview on bloomberg quint said that Sentient took over some tech that KPIT was working on earlier. Has any compensation been paid to KPIT?
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Why are complementary activities being carried out privately by the management, whilst using the listed company’s resources. Is this a case that if the tech succeeds, the management will reap the benefits while giving some small scraps to the listed entity, while it is actually the listed entity that bears the cost if the project fails?
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Why are employees being shared? Senior KPIT officer has been named as contact for Sentient lab on Zauba. In fact, the contact details include her kpit email id!
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Finally I pointed out that these shenanigans are a big irritant for global fund managers because the management has shown its propensity to pull of such stunts. Its unacceptable.
Companies need to be put on the spot for such things. H fuel cell may become big business in a couple of years. Why should the management use our resources (minority shareholders) to seed that business but then deprive us of the benefits. If the management argues that this is a high risk business and will likely fail, then why are they doing it at all, that too with listed company resources.
KPIT is a big part of my portfolio, and I had expected corporate gov had improved, so am very disappointed with what they are doing.
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