The Rs 1,800-crore Sanghi Group, engaged in multi-faceted activities such as textiles, spinning, cement, publications etc, is heading for a partition.
The group, many companies in which are still closely-held by the family, is headed by Anand Prakash Sanghi, and supported by his brother-directors ? Sudhir, Ravi and Girish. The partition, the broad contours of which are still being worked out among the brothers, is being seen as the best way for the group to expand.
Founded by the late Ramcharan Sanghi over four decades ago, the industrial group has established its presence in textile-related activities, now with an asset base of $2 billion. It is now seen as one of the largest and leading multi-product, industrial groups in south India.
The group includes Sanghi Polyesters Ltd. (SPL), Sanghi Industries Ltd (SIL), Sanghi Spinners India Ltd. (SSIL), Sanghi Textiles Pvt. Ltd. (STL), Sanghi Zip Fasteners Pvt. Ltd. (SZFPL), Sanghi Filaments Pvt Ltd. (SFPL), Sanghi Threads Pvt. Ltd. (STPL), Sanghi Polymers Pvt.Ltd (SPPL), AGA Publications Pvt Ltd and the newly-formed Sanghi SEZ Pvt Ltd.
Sources close to the group confirmed the move by the group to segregate responsibilities. ?Over a period of time, internal disputes have cropped up causing a rift among the brothers. But now, the group is working together to solve the issues amicably. A fair settlement is expected to be reached in the next one year. Once the settlement is arrived at, the split groups will aim to be ranked among the global players,?? highly-placed sources in the group said.
As of now, the group is equally divided among the four brothers.
Despite internal disputes existing among the brothers over the businesses for quite some time, the issues have not surfaced, thus resulting in smooth functioning of the companies. Knowledgeable sources say that one of the options the brothers are looking could be arriving at cash settlement.
Sources also pointed out that if the group is undivided, the asset base could be increased to $10 billion in the next four years. However, if divided, each of the brothers would have an asset base of Rs 2,000 crore. It is reliably learnt that Anand Prakash Sanghi and Sudhir Sanghi form one bloc, while Ravi Sanghi and Girish Sanghi are together as another group. The crossholding patterns of the brothers in the group companies are now being discussed following the decision to arrive at a partition, sources added.
The two brother-directors Anand Prakash Sanghi and Sudhir Sanghi started the Sanghi companies with the inception of Sanghi Textiles Pvt Ltd. The group now accommodates over 5,000 employees working at different levels distributed into various departments and teams, with its major operations primarily based in Sanghi Nagar, located 30 kilometers from Hyderabad.
