Basant Kumar Birla, the grand old man of Indian business, has decided to hand over the reins of his empire over 3 years, to grandson Kumar Mangalam.
KOLKATA: Basant Kumar Birla, the grand old man of Indian business, has decided to hand over the reins of his empire over the next three years, if not earlier, to his grandson Kumar Mangalam Birla, who heads the AV Birla group.
As per his wishes, all cement companies will go to his grandson, but a part of Kesoram Industries, the flagship of the group, is likely to be given as a share to his daughter, Manjushree Khaitan.
The succession plan of the B K Birla Group has been much in news over the last couple of months, with the Birla patriarch expressing his intent of dividing his wealth among his children and grandchildren.
“I plan to retire within the next three years, when I will be 90. All cement companies will go to my grandson Kumar along with Kesoram Industries. Depending on Kumar and in case he is prepared to cooperate, it will be faster,” B K Birla said. “A part of Kesoram will also go to Manjushree,” he categorically added
This is significant as the inheritance plan of Kesoram seems to have been a little fluctuating. A couple of months back, B K Birla announced that the company would be in charge of his grandson, a departure from the earlier succession plan of 2001, which had apparently decided that Manjushree Khaitan would take over the reins of Kesoram.
Manjushree is a director in the company at present. She also heads the city-based BPO unit Manjushree Infotech.
Under the earlier succession plan, Century Textiles and Century Enka were to go to Kumar Mangalam Birla. But in a sudden volte face, B K Birla clarified sometime back that his grandson would also take the reins of Kesoram, apart from those two companies, while his older daughter Jayshree would get Jay Shree Tea & Industries.
Later on, when asked on the change of decision, he just said, “Manjushree will get something. She will be associated with Kesoram even as Kumar would run it in future.”
Currently, a Rs 1,400-crore expansion programme is on in Kesoram and Kumar Mangalam’s experience may just be what the company needs in future.
With a new succession plan in place, the fate of two other group companies-Mangalam Cement and ECE Industries are not too clear. Vidula Jain, daughter of Manjushree is tipped to take charge of Mangalam Timber.
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