The younger generation of Kirloskars now heading the leading companies in the group emphatically denied there were any problems. They were still holding their review meetings where all company activities were put under the microscope and major investment decisions taken collectively.

However, they reiterated that company level decisions were being taken independently by whoever was heading the company. "Each company has its obligation to its shareholders and the thrust is on running these companies independently," the brothers echoed.

Kirloskar Brothers Ltd chairman and managing director Sanjay Kirloskar, Kirloskar Pneumatic chairman andmanaging director Rahul Kirloskar and Kirloskar Oil Engines charman and managing director Atul Kirloskar hold monthly meetings with their Bangalore-based uncle Vijay Kirloskar and other cousins and this has been the practice for a long time.

The group is looking towards making the overall business grow. Cross-holding within the group has also been increased in top four companies, KOEL, KPC, KEC and KBL taking the average cross holding to around 35 to 40 per cent. The family owns nearly 48 to 50 per cent in all these major companies.

"We have been exiting from non-core business areas. Each company will have to decide whether to remain or get out of that particular business on its own," said Sanjay Kirloskar. They cited the recent sale of their five-star hotel property in Pune to the Taj group. "With the entry of international hotel chains such as Meridien and Holiday Inn it would have been difficult for us to keep pace and hence the decision to move out."

About the reduction in the equity in theautomobile joint venture with Toyota, they said that the company was unable to bring in funds on time as they were unable to realize money locked in real estate. "The Toyota group has been understanding about this and we can put in the money back into the venture later," they said. "Our main interest in this venture is auto components and that continues."

The family members felt that it was a wrong perception in the market that they were not doing well. Each manufacturing company enjoys a good market share in its areas and is exporting to major markets such as Europe meeting all the latest norms, said Rahul Kirloskar. KOEL and KBL are making profits. Kirloskar Pneumatic had a bad year last year but is recovering ground this year.

Despite all this, the family admits that the group's image has taken a beating and it was being perceived as inward looking. The family feels fundamentally there is nothing wrong and the problem has been inability to communicate to world at large.

A beginning is being made andthe group has its work cut out -- living up to the legacy of their grandfather `SLK' and spelling out a clear vision for the group.