Nusli Wadia, the Wadia Group patriarch, has decided to reorganise his business empire among his two sons, Ness and Jeh.
Following a board meeting on Tuesday, Ness takes over the management of one of the group's oldest and asset-heavy entities, Bombay Burmah Trading Corporation, as its managing director.
Bombay Burmah, with interests in plantations, trading and commodities, occasionally doubles up as the group's holding company.
Younger brother Jeh, who is also the managing director of GoAir, will step down as deputy managing director of the corporation but will continue as an additional director.
As on March 2010, Bombay Burmah's sales were Rs 4,237.83 crore (Rs 42.38 billion). It had a profit after tax (PAT) of Rs 91.97 crore (Rs 920 million). Its current market cap is Rs 556.59 crore (Rs 5.57 billion).
It has been a reversal of responsibilities at flagship Bombay Dyeing. In a surprise move, Jeh has been appointed the managing director with effect from next month.
Ness, who has in the recent past become the public face of the company as its joint managing director, is giving way to his younger brother, while he becomes an additional director.
As on March 2010, Bombay Dyeing's sales were Rs 1,631 crore (Rs 16.31 billion) and its PAT was Rs 18.42 crore (Rs 184 million). The company's current market cap is Rs 1,407.72 crore (Rs 14.08 billion).
Ness is credited with monetising Bombay Dyeing's idle mill land into an independent revenue stream.
Ness initiated the company's foray into realty development in Worli and in other parts of Central Mumbai.
The Wadia Group has one of the largest land banks in the city of Mumbai and its suburbs.
Sources said Jeh and Vinita Bali, the managing director of flagship Britannia, had of late been proactively involved in giving Bombay Dyeing a consumer connect.
Ness has been with Bombay Dyeing & Manufacturing Co. Ltd for over 11 years, initially as a management trainee and prior to his induction on the board as a marketing manager.
He was closely involved in the marketing and retail distribution of the textile division of Bombay Dyeing and strategically involved in textiles & polyester divisions. He has served as deputy managing director of Bombay Dyeing & Manufacturing Co Ltd since August 1, 2001.
Younger brother Jeh is responsible for turning around Go Air and has managed to survive despite cut-throat competition in the domestic aviation space.
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