Cross holding not a problem to succession plan: BK Birla
Cross holding among group companies of the Rs 10,000-crore B K Birla group will not be a problem for the succession plan approved by the family, group chairman BK Birla told PTI.business Updated: Jul 12, 2009 12:35 IST
Cross holding among group companies of the Rs 10,000-crore B K Birla group will not be a problem for the succession plan approved by the family, group chairman BK Birla told PTI.
"The cross holding between group companies will not be a problem for implementation of the succession plan," Birla said.
Stock exchange data show that in some companies like Mangalam Cement and Mangalam Timber which would go to different heirs would have quite high cross-holdings.
Birla said, "Family members share a very good relationship and cross holding will not be a problem."
In companies like Mangalam Cement and Mangalam Timber which would be go to Vidula Jalan (the daughter of Manjushree Khaitan), the holding of companies that would be handed over to Kumar Mangalam Birla were quite high.
According to the succession plan, Birla's grandson Kumar Mangalam Birla was to get Kesoram, Century Textile and Industries, Century Enka and Century Extrusion
Birla's daughter Jayshree Mohata would get Jayshree Tea and Industries and ECE. Another daughter, Manjushree Kahitan would get Manjushree Plantation, while her daughter would get Manglam Cement and Mangalam Timber.
The March shareholding pattern data showed Kesoram and Century Textiles holds 16.90 per cent in Mangalam Cement, while Jayshree Mohata's companies (Jayshree Tea and ECE) hold 5.78 per cent.
This takes a total combined holding of Kumarmagalam Birla and Jayshree Mohta's companies to 22.68 per cent out of total total promoter's holding in the company of 27.07 per cent.
In Mangalam Timber, the combined holding of Kesoram and Century Textiles was 17.49 per cent out of total promoter holding of 32.34 per cent.
In other major companies the cross holding seems on the lower side such as in Kesoram, where Jayshree Tea and ECE holds 2.73 per cent only, while in Jayshree Tea Kesoram and Century Textile holds 3.57 per cent.
A year earlier, Birla had said that initiative had been taken to untangle the group's cross holding to facilitate the handing over of companies to family members for succession.