OP Jindal: Steel from scratch

The ‘typical street-smart fighter’ withdrew from the day-to-day running of the Jindal empire in 1991 when he entered politics. He, however, remained behind the scenes and was seen as the ‘steely patriarch’, the glue for the group that controls five listed entities.

The management of the group companies is looked after by his four sons, and here there seems to be a clear demarcation. While P.R. Jindal and his daughter Sminu look after Jindal Saw Ltd, Sajjan Jindal manages Jindal Vijaynagar Ltd, Ratan Jindal controls Jindal Stainless and Jindal Strips, while the youngest Navin Jindal looks after Jindal Steel & Power.

That said, as there are a lot of cross-holdings between different businesses of the family, the brothers will have to work extra hard to ensure a smooth succession plan in the absence of the patriarch. Estimates put Sr Jindal’s private worth at over Rs 3,800 crore and the family’s joint property value at Rs 7,700 crore.

The signs of problems surfaced in mid-November 2004 when feud broke out between Sajjan Jindal and the rest of the Jindal clan. Earlier last year, he hived off Jindal Iron & Steel into a holding investment company, and the steel manufacturing business was merged with Jindal Vijaynagar Steel through private placement. ‘‘Sajjan has been very assertive to break off from the rest of the family. Sajjan’s separation is on the cards,’’ a source says.

If that happens, then P.R. Jindal, the eldest son, will head the Jindal group. Analysts say the group’s performance will not be hampered by Jindal’s death.

Shares of Jindal companies were mixed on the BSE. Jindal Stainless was down 1.04 per cent at Rs 95.50, Jindal Vijaynagar Steel was down 0.32 per cent, Jindal Steel and Power was up 2.27 per cent at Rs 1,047.20, Jindal Saw Ltd was up 1.77 per cent at Rs 268.05 and Jindal Strips Ltd was up 2.27 per cent at Rs 265.90.

OP Jindal’s story began in 1947, when he redrew the blueprint of his small steel pipe business in Nalwa, a village in Haryana, and set out for Kolkata. By 1952, and just 22, he was experienced enough to set up the group’s first factory at Liluah, near Kolkata, for the manufacturing of steel pipes, bends and sockets. Soon, a similar manufacturing unit was set up at Hissar in Haryana.

In 1970, he established Jindal Strips and a mini steel plant set up at Hissar to manufacture coils and plates. The Jindal group is now the fourth in India after Reliance, Tatas and Aditya Birla group in assets and sales turnover in the private sector.