Now that mourning the demise of Rai Bahadur M.S. Oberoi is over, there has been some restructuring of the board of the country’s second largest hotel company. Predictably and most appropriately P.R.S. was appointed Chairman. Joining the Board now also are Bombay Dyeing Chairman, Nusli Wadia and Bombay’s media savvy construction tycoon Rajan Raheja. Oberoi maintains that the industrialists have been inducted into the Board to strengthen it and who better than Nusli Wadia who was also a friend. Industry sources however are certain that this is a ploy to strengthen the family’s position against hospitality industry rival ITC that has built close to 14 per cent stake in EIH from the market. The Oberois are understandably disturbed with this even though ITC maintains that it has no plans to shake up the EIH management. Oberoi is optimistic that with Wadia and Raheja on the Board, the scenario of the game being played by the cigarette and hotel major will change. Will B.K. hang up his boots Will he, won’t he - this question regarding the patriarch’s retirement that been on everybody’s mind in the B.K. Birla Group. B.K., himself, put to rest these speculations, at the AGM of Century Enka. He said that both his own grandson and Kumar Mangalam want him to continue. He added that he had been continuously pleading with Kumar Mangalam to take over the management of the companies but he is too busy with his own group companies. So B.K. will continue to monitor the Group’s companies including Century Textiles, which is the main money-spinner, of this Rs.5500 crore Group. He mentioned that other members of the family would take charge of companies on the basis of their involvement. So it is not going to be long before we see elder daughter Jayshree Mohta take charge of Jayshree Tea and younger daughter Manjushree Khaitan take charge of Kesoram Industries. Retirement though, seems still some time away. Pedalling harder The man presiding over TI Cycles (part of the professionalised Murugappa group), G Hari is giving the company’s manufacturing a total revamp. Cycles are going to be made more cost-effectively. This revamp, he hopes will ensure their emerging as the leaders in the bicycle segment in the country. The terrain however does not seem too smooth. Incidentally one big move has been creating a strong vendor base for the new Nashik manufacturing facility. Earlier the company being Chennai-based faced a disadvantage since most of its market lay up north. So not only has he set up a successful plant in Nashik, but he also hopes to imitate the same in other parts of the country. In order to focus on the task at hand, he has also temporarily withdrawn from the export market. The main reason for this recent revamp has of course been the strong threat posed by the Chinese players. Hari does not admit to this. But he has opened a business office in Shanghai, which would be used to make a better evaluation of the Chinese market. Hari says that this move is only to source certain components and he adds bravely to study export prospects there. So Hari, in a break from the Group’s usual practice seems to have moved the battle right up to the enemy tent. Tail piece Many industrialists have been busy displaying the number of trips they made to Mumbai, on account of Dhirubhai’s demise. In keeping with the man’s immense stature there’s never been a funeral, or even a hospitalization that drew almost the entire pantheon of India’s business leaders. They cut across all sectors and included titans from all industry associations. While the one sole exception was noted, it wasn’t entirely surprising, so let’s not worry about that folks. It’s a testament to Dhirubhai’s inculcation of the right work ethics into his boys Mukesh and Anil that they were back at work the day after the funeral. And those in the know believe that the next few months will see blazing forays that are fired by the spirit of a man, who dared to dream humongous. (Dilip Cherian, runs a public affairs firm Perfect Relatios. He is an economy watcher and tycoon tracker. None of the people he writes about are his clients. Your insider tales are welcome at dilipcherian@now-india.net.in)
