Basant Kumar Birla, chairman of Kesoram Industries Ltd, has made it clear that under no immediate timeframe would his grandson Kumar Mangalam Birla, chairman of the Aditya Birla group, join his flagship’s board.
“He (Kumar Mangalam) is already in the board of Century Textiles. He tells me that he is busy with his own business and is not in a position to travel to Kolkata for board meetings,” Basant babu said.
“He says he does not want to be in the board, after 2-3 years, I will see,” said the grand old man of Indian industry.
Basant babu was talking to the press after the 89th annual general meeting of Kesoram held on Thursday.
At the AGM last year, Birla had said that the group’s business would be divided between his daughter Manjushree Khaitan and his grandson Kumar Mangalam Birla after he leaves. On Thursday, Basant babu said that neither his daughter nor his grandson was willing to discuss the succession time frame.
“They are not willing to discuss. Kumar Mangalam said you continue till the age of hundred. He will not talk to me about this,” he said.
He made it clear that the group companies will not be divided between Manjushree Khaitan and Kumar Mangalam. The company will remain one. Both of them jointly will run the company. One can be the chairman and the other vice chairman and may be some of the units will be run by Kumar Mangalam and some by Manjusree.
“I will not say who will look after whom. That is a matter is to be decided after I expire between Kumar Mangalam and Manjushree? We will protect the interests of the shareholders,” said Birla.
Regarding hiving off the less profitable business segments like spun pipes, Birla said that there is no plan yet. “We are trying to find out how we can improve the business.”
Birla said clearly that the company would not hive off less profitable businesses. “The staff is there, the workers are there for a long time ? these units are 30-40 years old. Suppose you have a son or daughter who is an invalid are you going to discard them?”
Kesoram Industries reported revenues of Rs 3,440 crore in 2007-08 against Rs 2,516 crore in 2006-07.
The tyre business contributed sales of Rs 1,389 crore in 2007-08 against Rs 1,112 crore in 2006-07, while cement, the other major business, contributed 1,719 crore in the latest year against Rs 1,156 crore in the previous year.
