B K Birla’s exit marks the formal handover of the control of investment company to Kumar Mangalam Birla
In what could be seen as an end of an era for the Birla clan, Basant Kumar Birla, the nonagenarian head of a clutch of old economy companies, has stepped down from the board of Pilani Investment and Industries Corp, the holding company for his group. He has been replaced by Rajashree Birla, mother of Kumar Mangalam Birla.
The resignation, which was accepted by the Pilani board on Sunday, marks the formal handover of the control of the investment company to Kumar Mangalam Birla, grandson of the Kolkata-based BK Birla who heads companies like Kesoram Industries, Jayshree Tea, Century Textile and Industries among others.
Pilani holds significant stakes in companies like Grasim, Hindalco, UltraTech, Idea Cellular, Century Textiles among others.
"At a meeting of the Board of Directors of the company held today, the Board approved the followings: Request of BK Birla to step down as a director of the company after a long and eventful innings of over three decades with effect from April 1; the board has, in recognition of BK Birla's outstanding contribution, appointed him as Chairman Emeritus of the company with effect from April 1; Rajashree Birla has been appointed/ designated as non-executive chairperson of the company," Pilani said post the Board meeting on Sunday.
KM Birla has been controlling the holding company Pilani through his investment arm Aditya Marketing, which controls a 34.7% stake for the past several years. However, Kumar Birla has so far distanced himself from taking control in person and has, in fact, resigned from the Board of Pilani. He replaced himself by his mother who holds directorship in several group companies like Grasim Industries, Hindalco and UltraTech Cement.
BK Birla's current move to step down from Pilani is, however, in contrast to his recent moves where he again showed interest in holding the chairmanship of the manufacturing companies of the group, including the flagship Kesoram Industries.
As per his grandfather's earlier wish, KM Birla was supposed to take over as chairman of all the companies that BK Birla controlled, a request which was turned down by KM possibly to avoid any rift with other members of the family who are based out of Kolkata, notably BK's two daughters, Manjushree and Jayshree.
Rapid fall in the fortunes of the companies like Kesoram also forced KM Birla, head of one of India's largest industrial conglomerate, to distance himself from the empire of his grandfather forcing BK, who is 98 years of age now, to continue as the chairman of the group.
K M BIRLA IN SADDLE
- B K Birla’s exit marks the formal handover of the control of investment company to Kumar Mangalam Birla
- K M Birla has been controlling Pilani through his investment arm Aditya Marketing
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