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Grasim may seek 3 board slots, FIs hold the key

Baburajan K

Grasim Industries is planning to seek three seats on the L&T board. The Reliance group has at present two nominees-Anil Ambani and Mukesh Ambani-on the board of L&T. However, two other L&T independent directors are understood to have close association with the Ambanis.

Sources familiar with the development said any plan to induct three members from the Birla group would have to be ratified by L&T's board and eventually its shareholders.

The financial institutions, which have a 24 per cent stake in L&T will turn out to be the final arbiters in the deal.

"Financial institutions will have a larger say in this matter. Over the next few days, the Birlas are likely to approach the FIs for discussing the matter," sources added.

Traditionally, FIs have had a major say in the management of L&T, as last seen at the time of choosing a successor to the last managing director SD Kulkarni.

When contacted, Sourabh Misra, head of the AV Birla group's cement business, said: "At this stage, we do not want to speculate on the number of our nominees on the board of L&T. However, we will have some nominees on the board."

At present, the L&T board comprises managing director and CEO AM Naik, A Ramakrishna, JP Nayak, YM Deosthalee, K Venkataramanan, SS Marathe, Mukesh Ambani, Anil Ambani, ML Bhakta, DV Kapur, G Armbruster, PM Venkatasubramanian, SK Kapur, BG Daga and A Ramamurthy.

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