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K K Birla group reins go to daughters

Kausik Datta in Kolkata

The succession plan at the K K Birla group is being rolled out. The responsibility of managing group companies will be divided among octogenarian Birla's three daughters - Nandini Nopany, Jyotsna Poddar and Shobhana Bhartia.

The three heirs are currently in management supervision of certain companies and sources said this will be transformed into management control once group chief Krishna Kumar, who is 84, retires.

In line with this understanding, the heirs have stepped down from the boards of companies not under their supervision.

For instance, representatives of the Poddar and Bhartia families resigned from the board of India Steamship recently, where management supervision lies with the Nopany family.

"A clear pattern has emerged, in which each group company, except Chambal Fertilisers, has either a Nopany or Poddar or Bhartia on the board", the source said.

Eldest daughter Nandini Nopany and her son Chandra Sekhar are currently supervising three sugar companies, Oudh Sugar, Upper Ganges and New India, besides textile maker Sutlej Industries and India Steamship.

Saroj Poddar, Jyotsna's husband, supervises the travel firm Rosenbluth, heavy engineering firm Texmaco and fertiliser maker Zuari Industries.

Through Zuari Industries, Poddar also attends to Zuari Cement, a joint venture cement maker, and Paradeep Phosphates, which was recently acquired through the divestment route by Zuari Industries.

Shobhana Bhartia looks after the media business of the group including Hindustan Times, one of the largest circulated English dailies.

The three heirs are jointly supervising Chambal Fertilisers. As Chambal holds 50 per cent stake in Birla Home Finance, the three families hold equal stake in it.

Krishna Kumar has long been playing a "motivational and advisory" role. Last week, he stepped from Oudh Sugar sparking off speculation about his retirement.

Sources said K K Birla's resignation from Oudh Sugar did not mean that he will retire from the group soon. "He may step down from other sugar companies as well but he will continue as the group head," they added.

After the family split following the death of Ghanshyam Das Birla, the K K Birla group was carved out in 1983.

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