Son-rise likely in Piramal, Anand may join realty biz
Speaking to Sachin Dave & Sachin Kumar, Piramal group chairman Ajay Piramal indicated that whenever the group does go in for a succession plan, both his children — Nandini and Anand — would be included.business Updated: May 09, 2011 20:43 IST
Succession bells are ringing at India’s top business house — the Piramal group.
Anand Piramal, son of Ajay and Swati Piramal, who is currently pursuing the final year of his MBA from Harvard Business School, is expected to join one of the group’s real estate-focused verticals this year, in a move industry trackers say is an important step towards formulating a succession plan for the group.
Speaking to HT, group chairman Ajay Piramal indicated that whenever the group does go in for a succession plan, both his children — Nandini and Anand — would be included. The move would make Piramal one of the few Indian groups to include daughters in succession plans.
“There is lot of time left for that (succession plans) but I am fortunate that both my children are interested in business, and that both having gone through the best business schools in the world and are well prepared,” Piramal said.
Asked whether Anand would join the real estate vertical, Piramal told HT: “He will be joining the group after completing his MBA this year. Let him join (the group) first and then we would decide (where he would join). But yes, his inclination is towards real estate.”
The group has a presence in the real estate sector in more than one way. Piramal Realty, the real estate arm of the company, is set to invest Rs 1,500 crore this year in five projects.
“Piramal Realty has pan India plans and I would not be surprised if they double their investments in the company within two to three years,” a senior executive of a Mumbai-based real estate firm said.
Apart from this, Piramal Realty has a joint venture with Sunteck Realty, called Piramal Sunteck, which has a Mumbai focus. The company also has exposure to the real estate portfolio through Indiareit, in which it acquired a majority stake recently. Piramal has also said one of the NBFCs (non-banking financial companies) it launched would also invest in real estate.
Anand holds an economics degree from the University of Pennsylvania and has an experience of heading the Piramal group’s pilot project e-Swasthya.
The group, which has more than Rs 3,000 crore reserves, had on Friday announced a Rs 1,000-crore foray into financial services.
Piramal Group had last year sold its domestic formulation business to Abbott for Rs 17,000 crore.
It acquired Indiareit Fund Advisors and Indiareit Investment Management for Rs 225 crore. The two companies put together have a Rs 3,800 crore exposure to real estate.