Speculations surrounding the succession plan of the B K Birla group were put to rest on Friday by the grand old patriarch of the group bequeathing the lion's share of his empire to his grandson and head of the Aditya Birla group Kumar Mangalam Birla.
The octogenarian chairman Basant Kumar Birla or BK Babu, as he's affectionately called by his associates, said he'll handover the reigns of most of his group's firms, barring two or three, to Kumar Mangalam.
Kesoram Industries, Century Textiles, Century Enka and Century Extrusions, which are together estimated to be worth Rs 9,400 crore, are said to be the companies that would go to Kumar Mangalam.
BK Birla, in his first-ever standalone press conference on Friday, said the decision to demarcate the assets of the group was taken at a family gathering a month back.
There will also be no splitting of the Kesoram assets as was speculated on various occasions at an earlier stage, he added.
"I am 89 years old now. When I am not here, my grandson will take charge of most of the companies, barring two or three. My father brought the company in 1921 and I came into the picture in 1937. I want to step down at 90, but everyone says since I am physically and mentally fit, I should continue for now. The decision, according to a will, was approved by everyone in the family sometime ago," Birla added.
BK Birla's younger daughter Manjushree Khaitan will inherit Manjushree Plantations and Infotech. His other daughter Jayshree Mohta will have Jayshree Tea & Industries and ECE. His granddaughter Vidula Jalan (Manjushree's daughter) and her family will inherit Mangalam Timber and Mangalam Cement.
"Kumar Mangalam is 42-years-old and will be able to take risks. He has expanded his own companies and will be able to do the same once he takes charge of these companies," Birla said.
The entire BK Birla empire is said to have a combined turnover of Rs 10,000 crore.