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In an interesting political twist, AAP chief Arvind Kejriwal picked Atishi Marlena, a junior minister and someone considered close to Deputy CM Manish Sisodia as the new chief minister of Delhi, as he decided to step down and hand in his resignation to Lt Governor VK Saxena. Known as the main brain behind Delhi Government school reforms, Atishi played down her elevation as a stopgap arrangement. Making it clear that Delhi and its 2 crore people can only have one CM — that is Arvind Kejriwal. Atishi asked party cadres not to celebrate her elevation. There could be celebration only after Kejriwal gets re-elected in the March 2025 assembly elections. Initial announcement about Atishi was made by a party heavyweight and potential contender Gopal Rai. AAP also made it clear that there will be no deputy CM this time. By choosing to play the woman card and not opting for his wife Sunita as CM, Kejriwal may have tried to buy time with voters but will it blunt the edge on incumbency and non-delivery? Only time will tell. Yet with her rise as CM, Atishi will be the third woman CM of the UT after Sushma Swaraj and Sheila Dikshit. Born in June 1981 Atishi hails from an academic family in Delhi, with her parents, Vijay Singh and Tripta Wahi, both professors at Delhi University. She will be the youngest CM of Delhi at 43.When Kejriwal became CM in December 2013 he was 45. With an undergraduate degree in History from the prestigious St Stephen’s College in 2001, she completed her Master’s from Oxford University as a Rhodes scholar.
AAP’s former CM Arvind Kejriwal has a new political guru in Congress MP and advocate Abhishek Manu Singhvi, instrumental in his enlargement on bail. Initial plans to reward Singhvi with Rajya Sabha seat failed, even blowing up in Kejriwal’s face over l’affaire Swati Maliwal, with Congress accommodating their estranged leader from Telangana instead. Senior BJP leader Mahendra Jain says, the non-resignation drama first, by Arvind Kejriwal, continuing during incarceration over five months and then, precipitating as two-day resignation drama played over worries about Delhi LG, VK Saxena’s imminent intention to seek his resignation following Supreme Court’s diktat against Kejriwal attending CMO, other official duties. While incarcerated, Kejriwal pretended to carry on as CM from jail although no government papers were signed by him over issues of confidentiality and directives of SC. Even his note to the LG seeking approval for AAP’s CM incumbent Atishi (Marlena Singh) hoisting the tricolour on August 15 was rejected by Saxena instead authorizing AAP minister Kailash Gehlot.” The LG took issue over Kejriwal’s access to official CMO letterhead over the communique with SC also curbing jail visitors thereafter. Plans to reach consensus over two days for better half Sunita Kejriwal as incumbent CM were shelved as LG would cite her unelected status with less than five months to state assembly elections in Delhi. With Atishi helming AAP, BJP lost no time raking up her parents’ leftist leaning as ideologues demanding release of parliament attack terrorist Afzal Guru. The saffron party insists moniker ‘Marlena’ was a combination appended to Atishi Singh’s name by parents assimilating leftist philosophers: Karl Marx and Vladimir Lenin.
Political parties have their own whims and fancy notions about good luck charms of their parliamentary party offices. That’s why when it comes to the new Parliament complex, it seems — both the Congress and the BJP– are reportedly being reluctant to move their parliamentary party offices from the old Parliament House. Both the offices are on the ground floor and have plenty of history to it. Of course ministers and the LoP do have their offices in the new complex. The only party which has moved into the new building is the Telugu Desam Party (TDP) which stormed to power in Andhra Pradesh winning 164 of 175 assembly seats in an electoral alliance with Janasena Party and the BJP and has 16 seats in Lok Sabha. The Lok Sabha Secretariat allocated a new office, F09, to the TDP on the first floor of the new Parliament, a prime location that also houses the offices of the Prime Minister and Union Ministers. This change marks a transition from the party’s previous office, Room No 5, which was situated in the old Parliament building. Recalling how the YSRCP led by Jagan Mohan Reddy had occupied TDP’s office after party was routed in 2019 elections, a TDP source pointed out that in the 2019 LS polls, the YSRCP had swept the elections, winning 22 of the 25 Lok Sabha seats in the state and TDP was reduced to just 3 seats. Official sources said regional parties like DMK are also reluctant to move into the new Parliament complex.
A new star has joined the Indian insurance galaxy! Galaxy Health Insurance Co Ltd is the new addition. The birth of Galaxy signals the re-entry of yet one more family of the erstwhile TVS group into the insurance space. Significantly enough, this happens a few years after the formal legal separation of four families of the erstwhile TVS group. Galaxy Health Insurance is promoted by Venu Srinivasan and his family. V Jagannathan, former CMD of United India Insurance Company and the founder of Star Health & Allied Insurance, is the co-promoter. Industry stalwart G Srinivasan, former head of United India Insurance, is the MD & CEO. The Galaxy board comprises Dr Sai Satish, a renowned cardiologist, and Sudarshan Venu, MD of TVS Motor Company. Galaxy Insurance is all set to commence its operations shortly. Insurance business is nothing new to the Chennai-based TVS Group. It was the owner of Madras Motor and General Insurance before the industry’s nationalization. After nationalization, Madras Motor merged into United India Insurance. Subsequently, in the post-liberalization era, Sundaram Finance, initially promoted by Madras Motor, launched Royal Sundaram Insurance, a general insurance company. Ironically enough, two former heads of United India Insurance will be guiding Galaxy Health Insurance to make a mark in the space. The size of the Indian health insurance sector was estimated at Rs 1.17 lakh crore in FY 2024, and is currently growing at a CAGR of 20%. Post the legal separation, assorted organisations who once formed part of the erstwhile TVS group are now freely exploring the freedom of opportunity, it appears.
Top BJP minister Nitin Gadkari’s sensational disclosure that he had been offered support for Prime Ministership by a prominent opposition leader before the Lok Sabha election is considered significant owing to its crucial timing. Gadkari generally avoids commenting on political developments and does not entertain any media questions in this regard. Hence, his candid revelation has surprised the BJP brass, which has refrained from reacting to it. The opposition, by and large, also has kept away from the potential bombshell. Gadkari has refused to name the opposition leader who made this offer to him. But the political grapevine is on overdrive to identify the opposition emissary. Various algorithms are applied to find out who it could be. Is he from Maharashtra? From Nagpur or Vidarbha? A former BJP member? Close to Rahul Gandhi or Mallikarjun Kharge? Or someone having tacit approach to the RSS decision makers? Of course, all these are supposition without any factual backing. Still, the suspense is mounting in view of the coming assembly elections. It is deepened since Gadkari has declared on multiple occasions that he is not interested in the topmost job and is happy with his ministry. In the past, his name was being discussed to become the Maharashtra CM but he had firmly rejected the idea. His only connection now with the state elections is that he is one of the star BJP campaigners.
The ongoing RG Kar Medical College protests have cast a shadow over the Bengali film industry, with many in the fraternity struggling to return to work amid constant backlash and online trolling. While several actors, directors, and singers actively participated in the protests, some have gone back to work sparking mixed reactions from the public. The situation intensified after West Bengal chief minister Mamata Banerjee’s call to “return to festivities”. This statement was widely criticized. Amidst this political tension, prominent figures in the Bengali entertainment industry have found themselves facing undue criticism from netizens. Celebrities like singer Iman Chakraborty, actors Swastika Mukherjee, and Sohini Sarkar, all of whom supported the protests, became targets of online trolling. Swastika faced particular backlash after promoting her upcoming film Tekka, despite her regular attendance at protest rallies. Dev, who stars in Tekka and is also a Trinamool Congress MP, defended his stance, supporting the movement while stressing that livelihoods, especially during Durga Puja, should not be affected. He pointed out that marginalized groups, such as dhakis, decorators, and vendors, depend on the festive season. Singer Shilajit, another victim of online criticism, echoed similar sentiments. He defended the importance of continuing work, noting that events contribute significantly to artists’ earnings. Director Raj Chakraborty expressed concern over how easily celebrities become targets for trolls, leading many to avoid social media. Amid this growing tension, promotions for upcoming Puja releases, such as Bohurupi and Shastri, have been toned down to avoid further controversy. The Bengali film industry continues to navigate these challenging times with caution.
The mantle of head coach of the Indian cricket team has passed on smoothly from Rahul Dravid to Gautam Gambhir. The once famous ‘Wall’ of Indian cricket has returned to IPL’s Jaipur franchise, Rajasthan Royals, but the immediate focus will be on the doughty left hander from Delhi who showed guts and gumption for India across the three formats, scored 10324 runs in 242 matches embellished with two World Cup titles — the Twenty20 In 2007 and the 50 over format in 2011. Gambhir’s international career spanned from 2003 to 2016 after which he spent time as a BJP member of the Lok Sabha from 2019 to 2024 before he joined Shah Rukh Khan’s Kolkata Knight Riders. His success there has catapulted him to the national team that won the Twenty20 World Cup in the West Indies in July. Gambhir’s first major work will be to facilitate India qualify for the final of the World Test Championship. India under Virat Kohli and Ravi Shastri and Rohit Sharma and Dravid finished second best against New Zealand and Australia in the two previous cycles of the WTC, the finals being played in Rose Bowl and The Oval. India has to win at least five of the remaining 10 Test matches to be in the running for a third consecutive WTC final appearance, and this time the final will be played at the famous Lord’s Cricket Ground in London from June 11 next. Gambhir will have five home Tests — two against Bangladesh, starting this Thursday and three against New Zealand — before the historic five-Test series in Australia from November 22. Guiding India to the WTC summit before the ICC Champions Trophy in February- March 2025 in Pakistan will give a perspective about Gambhir’s coaching and mentoring philosophy.
A free burqa distribution programme organised by a Eknath Shinde camp legislator highlighted the uneasiness between the ruling alliance partners particularly over the Muslim vote bank. While the BJP did express its displeasure about such acts as “appeasement politics”, they clearly had to leave it at that. The Eknath Shinde-led Shiv Sena neither publicly disowned nor criticised the drive, thus recognising the need to woo core voters. The MLA concerned, Yamini Jadhav recently lost from the prominent Mumbai South Parliamentary constituency by over 50,000 votes mainly due to the fact that the Muslim voters there chose to throw their weight behind Uddhav’s nominee, Arvind Sawant. The fact that 50% of voters in her Mazgaon constituency are Muslims, could not have been lost on her as she faces her electorate yet again to reclaim her MLA seat. All this, while the prominent alliance partner, the BJP continues to adopt an aggressive pro-Hindu pitch with Nitesh Rane’s diatribe against Muslims being the order of the day. The BJP has also been critical of Uddhav’s recent success in garnering the support of the Muslim vote bank terming it as a result of not being sincere to core Hindu ideology. The third partner, Ajit Pawar, has already clarified that he would continue to be secular, in spite of his alliance with the BJP. Pawar has gone ahead and almost-declared the candidatures in key Muslim-dominated seats like Bandra East (Zeeshan Siddiqi) and Anushakti Nagar (Nawab Malik’s daughter Sana Malik) ignoring the BJP.
Tamil Nadu chief minister MK Stalin said he would be seeking an appointment with Prime Minister Narendra Modi and personally request him to release funds meant for the second phase of the Chennai Metro Rail Ltd (CMRL) project as well as the funds due to the State under the Samagra Shiksha Abhiyan (SSA) relating to school education. Both funds have been blocked by the Centre. His finance minister Thangam Thennarasu has already issued a statement hitting out at the Union finance minister Nirmala Sitharaman for saying that the ongoing CMRL second phase for Chennai was a State sector project. He had pointed out that the project envisaged in 2017 was a central sector project in which the Union government’s share had worked out to Rs 7,425 crore. He also refuted a statement by Ms Sitharaman that the state had spent only Rs 5,880 crore on the 119-km phase II whereas the state had already expended more than Rs 18,000 crore so far. The step motherly treatment being meted out to Tamil Nadu, considered the last bastion against the ruling BJP is borne out by the fact that funds allocated for Metro Rail schemes in cities like Bengaluru (Rs 30,399 crore), Kochi (Rs 1,957 crore), Nagpur (Rs 6,708 crore), Pune (Rs 910 crore) and Thane (Rs 12,200 crore), are all from the Centre’s kitty while not even what was promised for Chennai Metro expansion has been delivered.
Even as film fans across the country are wildly speculating about divorce in the Bachchan’s family comes the news from Kollywood that Jayam Ravi, one of the most dependable performers (the standout star of Ponniyin Selvan) dropped a bombshell on his 44th birthday (Sept 9) that he is seeking divorce from wife Aarti after 15 years of marriage. The couple have two children. A shell shocked Aarti, a successful entrepreneur in her own right, said “Ravi did not consult me, nor was I aware that he is about to drop this bombshell on me and the kids. This unilateral announcement never gave me a chance …much as I tried to talk to him.” Coincidentally, Ravi’s first hit, M.Kumaran S/O Mahalakshmi was a film that touched the hearts of many. It is about a single mother who brings up her son with no help from a husband who walked out on the marriage. Ironically, Ravi asking for divorce will see Aarti face a similar predicament. Aarti is the daughter of successful TV serial producer Sujatha Vijayakumar. Has Ravi come to the end of his tether because of perceived interference of his in-law? Inspite of his busy schedule, Ravi has always given quality time for his family says sources. No one is aware of the real reason for Ravi’s ultimate break decision. But the way he has done it made Aarti lament, “My grace and individuality have been knocked out by the media speculations.” She still hopes for a rapprochement. Marriages are made in heaven, but hit the rocks in this fantasy world of tinsel make believe.
A new star has joined the Indian insurance galaxy! Galaxy Health Insurance Co Ltd is the new addition. The birth of Galaxy signals the re-entry of yet one more family of the erstwhile TVS group into the insurance space. Significantly enough, this happens a few years after the formal legal separation of four families of the erstwhile TVS group. Galaxy Health Insurance is promoted by Venu Srinivasan and his family. V Jagannathan, former CMD of United India Insurance Company and the founder of Star Health & Allied Insurance, is the co-promoter. Industry stalwart G Srinivasan, former head of United India Insurance, is the MD & CEO. The Galaxy board comprises Dr Sai Satish, a renowned cardiologist, and Sudarshan Venu, MD of TVS Motor Company. Galaxy Insurance is all set to commence its operations shortly. Insurance business is nothing new to the Chennai-based TVS Group. It was the owner of Madras Motor and General Insurance before the industry’s nationalization. After nationalization, Madras Motor merged into United India Insurance. Subsequently, in the post-liberalization era, Sundaram Finance, initially promoted by Madras Motor, launched Royal Sundaram Insurance, a general insurance company. Ironically enough, two former heads of United India Insurance will be guiding Galaxy Health Insurance to make a mark in the space. The size of the Indian health insurance sector was estimated at Rs 1.17 lakh crore in FY 2024, and is currently growing at a CAGR of 20%. Post the legal separation, assorted organisations who once formed part of the erstwhile TVS group are now freely exploring the freedom of opportunity, it appears.
The Chennai-headquartered Shriram Group has become a bone of contention between NCLT and IRDA. One of the largest financial services companies in the country underwent a series of reorganization in the not-so-distant past. Ostensibly, the objective was to un-clutter its cross-holdings to usher in a simplified structure. By doing so, it sought to consolidate its focus on its core business. The restructuring process also involved two group companies — Shriram Life Insurance Company Ltd and Shriram General Insurance Company Ltd. As part of the process, the separate investments of Shriram Capital in these two insurance ventures were demerged into two SPVs (special purpose vehicles) – Shriram LI Holdings and Shriram GI Holdings. These investments were described as businesses while setting in motion the demerger process. This was done mainly to address the taxation angle. Within a year or so of the formation of these two SPVs, a move was initiated to amalgamate these two with the Shriram Life Insurance Company Ltd and Shriram General Insurance Company Ltd. The NCLT in Jaipur (where Shriram General is headquartered) and NCLT in Hyderabad (where Shriram Life is headquartered) heard these cases for approval. Insurance regulator IRDA raised objections to the amalgamation at Jaipur NCLT. The IRDA insisted that it had sole powers to approve since the merger related to the insurance entity. The Jaipur NCLT, however, declared that a merger of a non-insurance company with the insurance firm falls within the purview of the Companies Act, and, hence, IRDA has no power. The NCLT Jaipur suggested that only transfer of shares would come under the Insurance Act. In this instance, the amalgamation will result in the issue of fresh shares only. Hence, the NCLT Jaipur is convinced that fresh share issue comes under its purview only. The amalgamation move, no doubt, has the NCLT nod. But the NCLT Jaipur order has a lot to ponder over for the IRDA. Consequent to the NCLT Jaipur...
Six decades have gone by since it was incorporated in 1959 as a company with charitable objects under Section 25 of the Companies Act, 1956 (now Section 8, Companies Act, 2013). Ostensibly, it was set up with the object to promote the spread of knowledge across assorted areas – such as politics, culture, art, history, sports and the like – and disseminate news to the general public both about Indian and foreign affairs. United News Of India (UNI) is a multilingual news agency. Once upon a time, it was one of the largest news agencies in India with several hundred subscribers across the length and breadth of the country. Today, it is a shadow of its past. Struggling to survive, UNI has now come under the IBC (Insolvency and Bankruptcy Code) resolution process. A process to invite resolution was initiated in August last year. However, based on a decision taken by the Committee of Creditors, a “Round 2” of the entire Resolution Process for inviting EOI (Expression of Interest) for submission of Plans has been now initiated. With just about 175 employees and revenue of less than Rs 7 crore, this once iconic news agency is on the verge of extinction. With the whole media industry going through tough times, UNI is hoping for a light at the end of the tunnel. Will the resolution process throw up a Good Samaritan? Fingers are crossed, indeed.
Now that N Srinivasan-headed India Cements has changed hands, the focus is clearly on what will happen to Chennai Super Kings Ltd. Once a division of India Cements, CSK was spun off into an independent entity following the conflict of interest issue. Post-India Cements sale, the focus obviously has turned to CSK. Where is it heading? Well, Srinivasan and his family have now consolidated their holding in CSK. They have increased their stake in CSK to nearly 42% from just above 28% in March 2023. The promoters now hold 158,016,303 shares. They had 86,726,373 shares in March 2023. The equity share has a face value of Rs 0.10 (ten paise). CSK Ltd. is the owner of the Chennai franchise of the IPL (Indian Premier League) T-20 cricket team. With the player auction for the upcoming IPL season coming up soon, the consolidation of holdings by the Srinivasan family in CSK reflects the commitment and passion of the promoter group to the cause of cricket. Not surprisingly, the board of CSK has decided to elevate K Viswanathan, popularly known as Kasi, a close loyalist of Srinivasan, as the managing director for a three-year term. Well, the context may have changed following the sale of India Cements. Srinivasan and Co, nevertheless, is focussed like a blinkered-horse on furthering the cause of cricket.
Quarter century is indeed a cause for celebration. Why not? For, it has come a long way and is now seeking to carve out a new identity for itself. With a portfolio of close to 50 projects spanning over 24.4 million square feet, primarily in Bengaluru, and Chennai, and Kolkata, Shriram Properties is gearing up to pursue a new path. Many in Southern India often relate this to the indomitable spirit of R Thyagarajan, the founder of the Shriram Group. An iconic name in Tamil Nadu, especially, the Shriram group has gone on to hit national headlines with a series of reorganisation. Today, the group is prominently known in the financial services space. As it gears up to chalk out a hectic growth path, Shriram Properties is ready to step out of the shadows of the Shriram group. Founder Thyagarajan is ever ready to acknowledge the fact Shriram Properties is largely the creation of Murali Malayappan, its Chairman and Managing Director. As Murali is preparing to take control of the company, Shriram Properties has chosen to have its own logo. This signals its first step towards having an independent identity. Yet, claims to be a part of the Shriram groups in its advertisements. Yet, the logo change signals the transition away from the Shriram group for this company conceived and nurtured largely by Murali. Shriram Properties, perhaps, is among the earliest organised players to get into the realty field. As he tries to lay a new road for Shriram Properties, Murali has a definite task on hand.
Vidal TPA is one of the leading health services management firms and amongst the world’s largest third-party administrators. It has a huge presence in India with over 35 million members and 12,000+ empanelled service providers such as hospitals, diagnostic labs and clinicians. Every year, it processes approximately one million claims and 800,000 pre-authorization requests. It claims that it is an early technology adopter. It reportedly oversees the well-being of over 180 million lives across India, spanning 28 states and 800 cities. It has over 40 offices nation-wide. A change appears to have happened at Vidal TPA. This has, perhaps, forced public sector New India Assurance Ltd to discontinue the services of Vidal TPA with effect from 1st October, 2024 from its Retail Health Insurance Policies. “We have made necessary modifications in our system,” said New India Assurance in a communication to its policy-holders. Surprisingly enough, New India Assurance hasn’t given any reason for discontinuing the services of Vidal TPA. However, grapevine tells us that Vidal TPA has changed hands, and reportedly come under the fold of a competing private entity. Well, the discontinuance of Vidal has put many policy-holders of New India Insurance in a spot of bother. Hopefully, the New India Assurance will quickly put in place a new arrangement without any inconvenience to the policy-
What is the conflict of interest? How do you define it? It defies a strict definition. Nevertheless, it lends itself for varied interpretations. When India Cements chairman N Srinivasan was heading the BCCI (Board for Control of Cricket in India), the conflict of interest issue hit the peak and he was forced to quit his post. The conflict of interest issue assumed gargantuan proportions when he (rather India Cements, the company promoted by him) was also the owner of the Chennai franchise of the IPL (Indian Premier League) team, Chennai Super Kings. The conflict of interest issue in this instance became a full-blown legal war and moved up to the highest court of the country. The term conflict of interest has become very popular thanks to the squabble in the cricketing world in the context of the ownership of the IPL world by a BCCI functionary. Are we not witnessing this in a different field now? The country’s leading lawyer Kapil Sibal is now appearing for the West Bengal government before the Supreme Court in the doctor rape-murder case that has shaken the whole country. He was part of the Congress party but now he is an Independent Rajya Sabha MP. He is also a Member of Parliament, which frames laws to protect women. He wears multiple hats. Is he not bound by any conflict of interest constraint? How strictly can he quarantine each of his roles without necessarily stepping into the conflict of interest terrain? A purported letter terming the incident “symptomatic malaise” and signed by Kapil Sibal under the letter-head of Supreme Court Bar Association (SCBA)is in circulation. A counter letter is also now in circulation purportedly signed by a former president of the SCBA, which questioned Sibal on the legitimacy of issuing such a letter under the guise of SCBA resolution and also his subsequent decision to appear for the West Bengal Government in this case. When one is wearing contradictory hats, what kind of a message will that send out down the...
The city of Chennai is known for a robust ecosystem that fosters family business. Traditional family businesses are dime a dozen in this part of the world. They have contributed enormously for the development of Tamil Nadu, in particular, and the country as a whole. Formidable business groups such as TVS, Murugappas, Amalgamation, Sanmar, India Cements, Ramco, Rane, Apollo, the Hindu and the like have all become iconic names in Chennai. An amalgamation of events – opening up of the economy, expansion of families, intense competition et al – has brought tough challenges to the family businesses. Not surprisingly, a wind of change is sweeping the Chennai business families. The Chennai corporate world was caught by surprise when TVS Sundram Fasteners Pvt Ltd, which had 48.36% stake in Suresh Krishna–headed Sundram Fasteners, sold 32,95,500 shares of Re 1 each at a whopping Rs 1,381 apiece. Post the dilution, TVS Sundram Fasteners will hold 46.79% in Sundram Fasteners. The dilution was ostensibly to help one of daughters of Suresh Krishna to raise funds for a new venture. Observers see in the dilution a kind of `family arrangement’ that has sort of provided some sort of an exit window to a family member in the business. Not long ago, there was a similar `family arrangement’ which saw a “non–compete family arrangement” between Venu Srinivasan, his wife Mallika Srinivasan and their kids. Much earlier, the Murugappa group inked a `family arrangement’ with one of the female members of the group – Valli Arunachalam – who had gone public, demanding either a role in the business or fair compensation. It took several decades for the four families that formed part of the larger TVS group to go their separate ways legally. The TVS model for `family arrangement’ appears to be a useful guide for many `family arrangements’ that are increasingly likely in the new–normal family business environment. Maybe, the Murugappas and Apollo have a lot to ponder over.
Winds of change are visible here. And, this change must bring a world of good to this organisation, which had almost slipped into oblivion. Kothari Industrial Corporation (KICL) is turning over a new leaf with a fresh management team. It has put the organization firmly back on track. A non-leather footwear park at the backward district of Tamil Nadu is already under way. With focus fixed on beefing up domestic production, this new team has gone at an hectic pace in putting together multiple alliances to make the upcoming park a role model for the country. Managing Director Jinnah Rafiq Ahmed is consumed by a passion to bring the past glory back to this once iconic organisation in the Dravidian land. Under his captaincy, KICL has already returned to the stock market following the re-listing of its shares. Right now, Jinnah Rafiq Ahmed is leading the KICL management with a deep sense of ownership! As he gets into a mission mode, KICL has just inked an alliance with OTB Industria e Comercio de Componentes e Technologia Ltda, (OTB) Franca of Brazil to set up a joint venture company to manufacture and market invisible pens and innovative solutions for shoe components. The joint venture will also explore the possibility of making UV (ultra violet) lights, which will help in identifying the marking. For the joint venture – Kothari OTB India Limited – the complete technology will come from the Brazilian partner. The Indian partner will hold majority shares in the joint venture. Jinnah Rafiq Ahmed is determined to use KICL as a fulcrum to provide jobs to women in backward areas of Tamil Nadu.
Life is a long-haul race. Those who stay on course win the ultimate accolade. A quitter never wins. So said the legendary Indian cricketer Sunil Gavaskar in his book Sunny Days. Ask Rajiv Reddy. He will gladly vouch for these. Just back from the Olympics extravaganza in Paris, the indefatigable Reddy has retained the Squash Champion title in Masters’ category at the 80th National Squash Championship in Mumbai. Age has never been a factor for him. But Rajiv Reddy is all passion-driven. He had taken to the sport when he was 36 years old, just after he had become a member of the MCC in 1987. Since then, it has been a one jolly good ride for him. In 2000, he went on to win his first national championship title in the over-45 year category. Since then, titles came to him in rapid succession. In 2019, he won the title in the over 65-year category, instituted only that year at the championship. Age is a mere number, said Hema Malini once. An ever-fit Rajiv Reddy, who sports a permanently friendly countenance, is an age-defying sport personality. If his enthusiasm is anything to go by, this ever-green sports person has an unalloyed propensity to ever stay wedded to the game of Squash. A player, referee, coach and what not, Rajiv Reddy is an all-encompassing sports personality. Staying in the game permanently is what makes him a role model for young ones in the sporting community.
In the modern business world, they play a critical role. The entire community of stakeholders in a corporate entity look for their views. Much of the decisions – of stakeholders across the canvass – are often guided by their views. The ratings of the raters are critical in the emerging business environment, which is increasingly turning riskier due to very many imponderables. Their rating can decisively impact – either way – the growth and development of any entity. Well, rating agency CARE has put the ratings assigned to the bank facilities of The India Cements on rating watch with positive implications. The CARE move comes close on the heels of the N Srinivasan-led promoters selling their stake to Aditya Birla Group-owned UltraTech Cement. No doubt, the stake sale has happened. But the operating environment remains what it was prior to the sale of sake by the promoters. A formal change of ownership will have to wait for clearances from assorted regulatory and other entities. CARE has taken a proactive view already. Sources say, CARE has removed the non-cooperation clause as non-applicable. It has indicated that it will review the ratings once all clearances are in place. India Cements has bounced back to profit track with Rs 57.45 crore net profit in the first quarter ended June 2024 against Rs 74.87 crore loss reported in the same period last year. Net profit is due to profit from sale of Parli Grinding unit to UltraTech. The ratings could cut both ways. That’s why care has to be exercised while giving a rating. This time around CARE has given a positive spin on India Cements, which has come under Birlas.
The advent of the Internet and the growth of digital space in its wake has turned everything topsy-turvy. The media world, especially, has undergone an unimaginable metamorphosis. The way news is consumed these days has ensured that the print version of the media world struggles for ever. If that is so for dailies, the predicament of the magazines is unimaginable. Not just the consumption behaviour has changed. The speed of the information dissemination has increased manifold. All these have left a big question mark on the sustainability of the print media of assorted kinds. This one has been in existence for over half-a-century. After the demise of its founder late S Viswanathan, this Chennai-based business publication is set to disappear into the pages of history. Promoters have announced that September 2024 will be the last issue of the Industrial Economist, which has always focussed on the growth and development of the corporate world, especially, in the south. An industrious person with a blinkered-horse like focus, the late Viswanathan tried his best to rejuvenate the Industrial Economist which was launched in 1968. The changing media landscape, rising costs and declining advertising revenue have all conspired to consign Industrial Economist to history. Very many summers ago, Chennai saw the shutters down on the iconic English evening newspaper, The Mail.
What’s in a name? What’s in a brand? All these can just disappear. As time goes by, all these can fall by the wayside. How else can one view the happenings in the corporate world of Tamil Nadu? In the early 90s, one of the brightest jewels of the Chennai industrial world — Enfield – changed hands. Promoted by S Viswanathan and his family, Bullet-maker Enfield was sold to the Eicher group. Viswanathan & his ilk had to give up Enfield due to a combination of issues including scalability. Today, the Eicher group has taken Enfield to a new height globally. A few days ago, another big name in Tamil Nadu – The India Cements – was sold to the Aditya Birla Group UltraTech Cement. That sale of India Cements by N Srinivasan and his family reflects the challenges of a family-owned business. There is a similarity between Enfield and India Cements in their sale. The promoters – either by choice or circumstances — had chosen to quit. What is of significance is the fact that both have changed hands due to a sale process. This is in contrast to management changes that are happening elsewhere in the Indian corporate world. There are many such these days and happen due to corporate insolvency resolution actions. The change of guard both at Enfield and India Cements pose new challenges to family-owned businesses in Tamil Nadu. Change is the sign of not just development but also maturity, it appears.
These two have been an inseparable part of his life. He is not just passionate about them. He has gone deeply into them. He lives these two. And, he breathes them as well. The two Cs — cement and cricket — have largely influenced the personality in him. A sense of toughness defines the man. Yet, he wears a sporty exterior. A combination of factors have conspired to goad the indefatigable N Srinivasan to let go of the cement business. It’s a tough call to quit. But he has reluctantly renounced the cement business. But he keeps his love for cricket intact. He may have sold his dear India Cements to Aditya Birla Group-owned UltraTech Cement. But he appears to have ring-fenced the league-level cricket teams supported by India Cements for decades. If grapevine has to go by, the league-level cricket teams are reportedly brought under the wings of Chennai Super Kings (CSK), which is the Chennai franchise owner of the IPL (Indian Premier League) team. Still, there could be some cricketing issues. The sale pact with UltraTech is perfect cricket, it appears.
If winter comes, can spring be far behind? If UltraTech Cement arrives, can the Adanis stay away? Well, the Aditya Birla Group-owned UltraTech Cement has just re-laid the industrial landscape in Tamil Nadu by buying out the indomitable N Srinivasan in The India Cements Ltd (ICL). Is this the beginning of a new order in the Southern cement field? All of a sudden, the game is getting redefined. In a fragmented south side story, the opportunities appear to be quite a lot. Not surprisingly, every little player in this part of the world pales into insignificance – reduced to the level of a small scale industry (in terms of capacity and financial muscle) – when compared to the Adanis and the Birlas of Ultratech. Adanis have just recently acquired Hyderabad-based Penna Cements. With Ultratech making its advances in the Dravidian land, Adanis have reportedly upped their ante and are looking around aggressively for cement assets. There are legacy names in this part of the world with good pedigree. When the competition takes an intense format, the playground becomes a vicious turner. When the name of the game is big, the focus is increasingly turning out to be on capacity building. What’s in a name? What’s in a brand? Everything can get consigned to the pages of history when the big game arrives!
After 75 years, The India Cements Ltd (ICL) has changed hands. The indefatigable vice-chairman & MD N Srinivasan has finally called it quits and sold his family holdings to the Aditya Birla Group-owned flagship company UltraTech Cement. At the end of the day, he was a reluctant seller having got into a pincer-like situation by a combination of physical, economic and financial factors. An aging Srinivasan and aging plants have pushed ICL, whose birth could be traced to the pre-Independence era, into the hands of UltraTech. It may not be easy for Srinivasan -– who breathes cement -– to let go of ICL. No doubt, Srinivasan and his family are richly rewarded for their renunciation of ICL. Yet, he must be silently suffering the pain of parting ICL. Significantly enough, he has managed to ring-fence Chennai Super Kings (CSK), the largely successful IPL (Indian Premier League) cricket team. As an independent unlisted company, it is now largely owned by him and his family. CSK has not only gone from strength to strength but also spread its wings across the globe. A passionate patron of Cricket and cricketer, Srinivasan and his ilk could now focus fully on the game like a blinkered-horse. Franchise-based sport is proving to be the future across the globe. Significantly enough, Ultratech will get ICL only since Srinivasan and his family have ring-fenced India Cements Capital as well. Indeed, a fresh innings has begun for Srinivasan and his family.
Remember Ramesh Vangal. Once upon a time, he was the face of Pepsi in India. In fact, he led PepsiCo’s landmark entry into India in the early 1990s.This was widely considered as a pioneer in India’s opening of FDI. Post-Pepsi, the arc light, however, continued to be on Vangal as he formed an alliance with Suresh Kalpathi, the founder of SSI Ltd. Vangal also got into a cobweb when his company, Katara Holdings Ltd (KHL) Mauritius, bought into Tamilnad Mercantile Bank (TMB), which was mired in controversy when internecine quarrels among promoter groups led to the shares slipping into non-Nadar hands. With funding facilitation from Standard Chartered Bank (Mauritius), KHL struck a complex deal in 2007 to acquire TMB shares. But the Enforcement Directorate found Stanchart guilty of violating Foreign Exchange Management Act in this particular transaction. Stanchart took the legal route to retrieve its money from KHL. The Supreme Court of Mauritius has since ordered the liquidation of KHL. Significantly enough, Vangal’s KHL holds over 53% stake in BSE-listed Kerala Ayurveda Ltd, a pioneer in providing Holistic Healing and Wellness Solutions. The official liquidator of KHL has informed Kerala Ayurveda that since he now has the custody and control of the shares held by KHL in the company, no trades are to be allowed on this stake without his authorization. The arc light is still focused on Vangal, it appears.
What’s in IT? Well, IT (information technology) makes an organisation efficient. Is it really so? Ask S Aruldass, managing director of the Chennai-based EAFS which was established in 1992. The company is a leading IT-Enabled Infrastructure & Engineering solution provider and project specialist in the design and building of Data centers & Network Solutions. Over eight summers have gone by and yet, this Chennai-based entrepreneur is at his wit’s end to recover the money for the services rendered by his company to Bengaluru-based IT major Wipro. After selling off his multi-cuisine restaurant (Noodle Kings), he founded EAFS to provide power and control solutions to corporations. It isn’t easy to be an MSME (micro, small and medium enterprise) organisation. He is acutely aware of this. But, he hasn’t bargained for an IT giant like Wipro to delay payment for services rendered several years ago! Constant churning of people in Wipro has only worsened his predicament. The IT age appears to have pushed the inter-personal relationship to a faceless computer interface. This is indeed causing avoidable hurt for smaller ones like EAFS. Non-receipt of payment, however, does not entitle EAFS to hold back on GST payments. The cumulative weight caused by non-receipt of payment from Wipro has cast a huge burden on him and his company. What is small for some may prove to be big for some others. Is Wipro listening?
Chennai is changing. More precisely, the heart of Chennai is undergoing a major metamorphosis. Yester-year iconic industrial and commercial properties are giving way to new skyscrapers, high-end luxury flats and shopping malls in the heart of Chennai. What spurs the change? There are opportunities aplenty for redevelopment now. The increased FSI (floor space index), the Metro Rail projects, myriad road bridges connecting central business corridors across Chennai, the rising demand from HNIs (high network individuals) and NextGen family members of the business group have all combined to liven up the real estate scene in the heart of the city of Chennai. Some of the iconic properties in Chennai are going through a re-development process. Crowne Plaza in Adyar, TVS property on Mount Road, President Hotel on RK Salai and Shanthi Theatre on Mount Road, among others, are now undergoing a metamorphosis. The Brigade group has now announced the development of a new landmark – Brigade Icon – on Mount Road in Chennai. It is now developing the property it had acquired from one of the wings of erstwhile TVS group into a residential complex. In the evolving Chennai landscape, owners of old properties find it prudent to relocate their businesses to IT and newer corridors. Indeed, the change is happening at a faster pace in Chennai.
In a country of over a hundred crore people, job creation must be the principal objective. Viewed from that perspective, the Make In India campaign of Prime Minister Narendra Modi must be welcomed whole-heartedly. Generating a slogan is a lot easier. Making it a reality, however, is a tough proposition. There are so many hurdles in the way for making the Make In India pitch a reality. It can become so only if all arms of the government – both at the Centre and at state level – work in complete coordination with each other. This ambitious non-leather footwear project in Perambalur district of Tamil Nadu promoted by the Kothari group is facing a peculiar problem. The technology partners — those setting up units in the non-leather footwear park — are unable to get fly in technical experts from China to India. Their presence is critical to get these units off the block quickly. Notwithstanding recommendations from assorted agencies, the authorities concerned are yet to clear Chinese technicians’ visas. Issues of minor nature like this can jeopardise the Make In India focus. Border skirmishes notwithstanding, bilateral trade between India and China in FY23 stood at $ 113.83 billion. As of 2022-23, China was India’s third-largest trading partner. Well, New Delhi must find ways to remove the glitches coming in the way of the Make In India campaign.
He knows inside out of cement. He breathes cement, and is passionate about his organisation. He is also acutely aware of the fast-changing dynamics in the cement industry. All along, he has run the cement business in a co-existing system. Initially, he worked with the Chemplast group as a co-promoter. Subsequently, he carried on with the Radhakishan Damani of DMart fame as passive investors. With the Damanis selling their stake to Aditya Birla Group company UltraTech Cement, N Srinivasan has to co-exist with the Birlas now. Is there a definite method to the latest twist? The way things are panning out, it appears a win-win for all the three players. Damani has cashed out happily. Birlas have gained more than a toe-hold into The India Cements, which has a legacy going back to pre-Independence days. Birlas have, for now at least, chosen to stop at the level of financial investor. Given the tall stature of Srinivasan and also considering his age, Birlas have taken a wise course. For Srinivasan, the situation is not new and yet new in a way. This time, he has to co-exist with a financial investor who is also a cement maker. For stakeholders across the canvas, this could be a welcome development. After all, Birlas have a rich background in terms of culture and values. That bodes well for India Cements. What lends credence to the emerging new setting was the unreported informal confabulations at India Cements a few days prior to the sale of stake by Damani in the open market to UltraTech people. The current arrangement seems perfect given the fact that both Srinivasan’s daughter and granddaughter are passionate about driving the cricket franchise Chennai Super Kings. Interestingly, for Birlas there is a Tamil Nadu connection, Kumar Mangalam Birla’s mother Rajashree was born in Madurai. She went to St Joseph’s Convent School and Fatima College. After her marriage to Aditya Birla she moved to Kolkata.
It’s a peculiar position to be in. It is a resounding win, no doubt. How to convert this into a gainful one for Tamil Nadu? Tamil Nadu chief minister MK Stalin must be pondering over this. The relationship between the DMK government and the BJP isn’t cordial to say the least. The big electoral victory of the DMK-led alliance in the recently-concluded Parliamentary elections is surely a big booster to the Stalin-led DMK. Yet, New Delhi has to be onboard to make Tamil Nadu a trillion dollar economy. Coming as it did against this backdrop, the elevation of Kanimozhi as the leader of the Parliamentary party of DMK appears to be an interesting strategic move by the Stalin party. For one, it sort of signals the transition – rather arrival – of GenNext in the party. For another, it is also speculated as a strategic initiative to build a long-term bridge with the political establishments across the canvass in New Delhi. She seems to have a good equation with Amit Shah. Also, Stalin has to be watchful of TDP’s Chandra Babu Naidu who is a pro-reformist. This time around, he is not so much angling for party representation in the Centre but financial packages and investments to his state. This is where Stalin must be missing the experienced senior Maran (Murasoli Maran), who played a perfect bridge between the party and the rulers in New Delhi. For Stalin who has won single-handedly elections for the government it is almost like running with the hare and hunting with hounds.
This one is a giant project. It is not just in terms of the capital cost. From the angle of its coverage too it is a mega one. Perhaps it is the first of the gargantuan size projects undertaken at one stretch in India. The Chennai Metro Rail is currently implementing a over Rs 63,000-crore phase II project to lay 116.1 km rail line with 119 stations in one stretch. Once fully functional, this will see the Chennai landscape change for the better and look completely different. Developing public transport of this kind — with underground and overground stations -– poses challenges of assorted kinds ranging from technical to environmental and logistics. Yet, the biggest challenge lies in making it an earning proposition for the Chennai Metro Rail, a joint venture between the Centre and the Tamil Nadu Government. Not surprisingly, Chennai Metro has hit upon an innovative way to explore non-fare revenue. It has joined hands with the Tamil Nadu Industrial Development Corporation to float a joint venture. This JV will develop commercial properties around metro rail stations, on the lines of those done in some cities around the globe. If there is a will, there is a way. Well, Chennai Metro Rail appears to be on the right track!
A lot is happening here and happening at a hectic pace. Well, the Chennai-born Shriram Group went through a major overall with mergers and reverse mergers resulting in a bloated Shriram Finance some time ago. It continues to hog the headlines. Last month, the South African conglomerate Sanlam upped its stake in the general and life insurance joint ventures with the Shriram group by picking up some shares from a private equity holder as well as from Shriram Ownership Trust. Significantly enough, Sanlam also divested a part of its direct holding in Shriram Finance to Shriram Value Service, a subsidiary of Shriram Capital Private Limited (SCPL) to facilitate the stake hikes. Sanlam owns 40.70% of SCPL. The balance is controlled by SOT and its affiliated entities. Now, Shriram Finance has gotten rid of its entire holding in Shriram Housing Finance for a whopping Rs 4,600 crore to Warburg Pincus. The Shriram move has put the long-time watchers of group and stock market pundits alike on an alert. Brand Shriram has always remained in the realm of mystery before the re-jig and post the reorganisation as well. The sale of the housing finance arm was on the cards always, no doubt. But the recent actions suggest a larger monetisation exercise at Shriram group.
Dharani Sugars and Chemicals, a listed entity, has returned to the hands of the original promoter. Well, the Chennai bench of NCLT has allowed an application filed by promoter PGP group for settlement and revival of Dharani Sugars and Chemicals.The application was filed under Section 12A of the IBC (Insolvency and Bankruptcy Code). Section 12A permits the withdrawal of an insolvency application against a corporate debtor if approved by at least 90% of the committee of creditors (CoC) in cases admitted under Section 7, Section 9 or Section 10 of IBC. Following the admission of the application, Dharani Sugars and Chemicals has come out of insolvency resolution process. This is the second victory for the PGP group before NCLT. Sometime ago, the group regained control of Appu Hotels, which runs the iconic Le Royal Meridien Chennai and Le Meridien Coimbatore. DSCL has three sugar plants in Tamil Nadu. DSCL was the first sugar company in Tamil Nadu promoted by NRI investors led by Dr Palani G Periasamy. Its revival augurs well for the Tamil Nadu sugar industry, one of the traditionally strong businesses of the state which has started languishing due to fall in cane cultivation area following drought and farmers opting for paddy, cotton and other crops. Well, Periasamy has reasons to cheer.
It is a household name in Tamil Nadu. Vummidi Bangaru Jewellers (VBJ) hit the national headlines after the installation of Sengol (sceptre) near the Speaker’s seat in the new Parliament. Vummudis were traced to be the makers of the Sengol that the Adeenams in Tamil Nadu had gifted to Pandit Nehru to symbolise the transfer of power from the British. The Sengol installation in the new Parliament has indeed given VBJ not just national visibility but global focus as well. The VBJ is yet again in the limelight. This time around, it is for its association with the Ram Mandir at Ayodhya. VBJ has presented an exquisite SriRamCharitManas, a sacred book to Ram Mandir, in all its golden glory. It features 524 intricately designed gold pages. Each page narrates the timeless chronicles of Lord Ram with poetic eloquence. It is kept in the sanctum sanctorum of Ram Temple at Ayodhya. Prior to presenting it to Ram Mandir, VBJ allowed the public to experience the “precious epic” by keeping it for public view at its store in Anna Salai in the heart of Chennai. Historically, VBJ stands for trust in the gold jewellery trade. That is getting expressed in newer ways, it appears.
India is witnessing two mega events this summer. As the people of the country are making a beeline for polling booths to elect a new Parliament, a cricket fever of an exciting kind has also gripped the masses with yet another edition of the popular Indian Premier League (IPL) truly under way. Is it possible to co-run national elections and the IPL? Why not? That seems to be the view of the political masters in New Delhi. This view is entirely opposite to the one held by Congress-led the UPA government earlier. Several seasons ago, the annual IPL was moved to South Africa since the then regime did not want that to clash with the national elections. With the Modi Government making a strong pitch for Make-in-India, shifting IPL out of the country could not even be considered by the political masters in New Delhi, lest it should send wrong — rather negative — signals to people at large. Moreover, the IPL has, over the years, become a money spinner with a huge multiplier effect on the national economy. They can’t afford to lose huge revenue by shifting IPL out of India during the national election. Well, the people aren’t complaining about the double dhamaka!
The Carnatic music world is caught in a huge controversy. The decision of The Music Academy of Madras to confer the prestigious Sangita Kalanidhi title on vocalist TM Krishna has not gone well with veteran artistes and music patrons. And social media has gone on overdrive. The latest to jump into it is Karnataka Classical Music Confederation Trust (KCMCT), which has sent out a strong missive to The Music Academy. Krishna, the rebel Carnatic musician has always been courting controversy for his stand. KCMCT in a communication to The Music Academy said “The recent decision to confer recognition upon an individual whose actions have caused considerable anguish among our fraternity of musicians is a matter of profound consternation. We are compelled to express our dismay at the choice to honour an individual whose conduct and pronouncements have engendered substantial discord and disunity among Karnataka musicians.” Krishna, after winning the Magsaysay award, has positioned himself as a social reformer. The Academy became his instant target. Accusing it of caste bias and discriminatory practices, Krishna boycotted its festival for several seasons. Aghast at its choice for Sangita Kalanidhi title, RaGa sisters (Ranjani-Gayatri) have chosen to pull out of the December festival of the Academy. Since then, the opposition to Krishna is escalating by the day with political parties such as DMK and BJP pitching in with their views. By honouring a rebel, the Academy has now managed to create an army of rebels. The tune set by the Academy headed by N Murali, owner of The Hindu group of publications, appears to have gone woefully awry. A lot of jarring notes are emanating from the Carnatic music world.
With India already clinching the ongoing five-test cricket series following a 3:1 victory against England, the cricket enthusiasts are now eagerly awaiting one more edition of the popular IPL (India Premier League). The indefatigable Mahendra Singh Dhoni is expected to lead the five-time champion Chennai Super Kings (CSK) yet one more time! As the expectation of fans rises to a crescendo, CSK will defend the title this time around with a new sponsor! Well, Etihad Airways, the national airline of the United Arab Emirates, is the new official sponsor of CSK. The partnership was unveiled at a special ceremony held in Chennai some time ago. Edition after edition, The India Cements Ltd (ICL) had been an inseparable principal sponsor of CSK for long. The Etihad partnership will come to life across Chennai Super Kings’ events and platforms with Etihad showcased on the back of the Chennai Super Kings’ jersey. That Etihad has replaced The India Cements as the principal sponsor is hard to visualise for many long-time watchers of CSK, which has become an iconic brand. Since Brand CSK commands quite a respect in the marketplace, the CSK management, perhaps, thought it prudent to pitch the principal sponsorship at a premium. It apparently took a lot to convince the management of India Cements, especially its boss N. Srinivasan. It is a win-win for both CSK and The Indian Cements, nevertheless.
Cement is not just what we all perceive. For a long time, it has been viewed as a commodity. This perception has changed. In the world of intense competition, cement has now become a crucial component of building solutions. So much so, branding has become an inevitable part of cement marketing. After consolidation of cement capacity, top players are shifting focus to position their brands strongly by roping in celebrities and sports stars. Bollywood star Shah Rukh Khan is the brand ambassador for industry leader, Ultratech. Not to be outdone, Damia Cement signed up another Bollywood star, Ranveer Singh, as its brand ambassador. A few years ago, JSW Cement brought on board former Indian cricket captain Sourav Ganguly and captain of India’s national football team Sunil Chhetri as its brand ambassadors. The India Cements, headed by industry veteran N Srinivasan, launched conkrete super king (CSK) as a game-changing cement. It was endorsed and powered by CSK’s iconic captain M S Dhoni’s Power of 7. Dhoni cement, as is called by dealers and influencers, CSK cement has become a hit in the last one year. With the construction activity at its peak on the eve of Lok Sabha elections, there is bound to be intense competition among top cement players to garner more volume and market share . Not just the power of the brands but also the ability of the ambassadors to pull business will be under test now.
It was an iconic name once upon a time. This Tamil Nadu-based central public sector undertaking Hindustan Photo Films Manufacturing Company Ltd (HPF), however, failed to survive the test of time. HPF has long been consigned to the pages of history. Through the IBC (Insolvency and Bankruptcy Code) route, HPF went into liquidation when the official liquidator invited bids for its sale as a “going concern” with a “disputed leasehold land to an extent of 291 acres” late last year. A fast-emerging Chennai-based group, which is coming up rapidly in the healthcare space, is reported to have successfully acquired land and other properties owned by HPF through the auction process. This health care company a few months ago signed up to take over another Chennai-based hospital in a over Rs 125-crore deal. HPF was incorporated in 1960 in the backward Nilgiris district in Tamil Nadu. Its main plant is located at Udhagamandalam. The company’s photographic films were sold under the name ‘Indu’. The company’s operations have been at a standstill since June 2013. A combination of factors — from obsolete technology to weak marketing and high input costs — pushed HPF to the brink. The digital revolution proved the last nail in its coffin. The acquisition indeed pictures the propensity for expansion by this healthcare group.
Much water has flown under the bridge since Valli Arunachalam stirred a hornet’s nest when she alleged gender discrimination to board positions at the Murugappa group. After a unilateral public spat, the daughter of late MV Murugappan (who was the chairman of CUMI) smoked a peace pipe with her family members to finally go her separate way after legal negotiations. Is there a gender bias at the Murugappa group? Not really if one were to go by the presentation made by MA Alagappan, chairman of AMM Foundation, which is a corporate social responsibility wing of the Chennai-based Murugappa group. Top women members of the family were prominently featured on the audio-visual which articulated the work of the foundation, which is celebrating its centenary. Each one of the women spoke with passion and in eloquent English. Insiders aver that the ladies at the group are intensely involved in the not-for-profit activities that directly touch upon the lives of the downtrodden. Be it in running hospitals or schools, the women folk in the family are right up there to provide the hand-holding. “We would like to be felt and not heard,” said Alagappan, pointing to the works of the foundation over the last 100 years. Established in 1924, the foundation manages five hospitals and an equal number of educational institutions. Behind the successful running of the foundation are these ladies who quietly carry on the Good Samaritan work at the Murugappa group.
Different tales, different strokes! This Christmas will be dissimilar for these two. For one, it will be a joyful celebration. For the other, however, this could be a farewell party. Well, we are talking about two iconic five-star hotels in Chennai. Crowne Plaza (formerly known as Adyar Gate Hotel) and Le Royal Meridien. Crowne Plaza will slip into the pages of history shortly. It has a new owner now in Bhashyam, a leading reality firm in Chennai. What the new owner intends to do with the acquired property is still not known. One thing, however, is sure. A prominent landmark — Crowne Plaza — will disappear from Adyar. The tale is different at Le Royal Meridien hotel at Guindy. Armed with National Company Law Tribunal order reversing insolvency process and restoring Appu Hotels to NRI industrialist, Dr Palani G Periyasamy, the two star hotels, Le Royal Meridien Chennai and Le Meridien Coimbatore are decked up and illuminated for a grand Christmas celebration. Periyasamy is set to step into the New Year with a sense of hope and fresh optimism. No doubt, an appeal has been filed in National Company Law Appellate Tribunal by MGM Healthcare which lost the bid for Appu Hotels and the case is slated for hearing on January 12. But it looks Appu Hotels is not in mood to give up the regained control.
This does not operate in an esoteric field. It is engaged in the dairy business. Today, it is a formidable player in Tamil Nadu, in particular, and the South, in general. Yet, this one has a unique record. It remained unaffected by demonetisation or the Covid-19. Much before digitisation became the new normal in the post-Covid world, Chennai-based Hatsun Agro Products Ltd had gone for a cashless transaction model. So much so, the aforesaid extraordinary events did not have any drastic negative impact on its business. Headed by RG Chandramogan, Hatsun was, perhaps, one of the very few companies which largely remained unaffected by demonetisation! Today, this entrepreneur-driven listed company has evolved into a significant name to reckon with in the dairy industry. This over Rs 8000-crore company has several popular brands such as Arun Ice-creams, Arokya Milk, Hatsun Curd, Hatsun Paneer, Hatsun Ghee, Hatsun Dairy Whitener and Ibaco. Its products are exported to 42 countries primarily to America, the Middle East and South Asia. Under a new initiative, Hatsun is eyeing large apartments to facilitate residents buy these brands through vending machines installed in their premises using smart cards supplied by Hatsun. Chandramogan is always on the look-out for markets waiting to be discovered, it appears.
TVS and Murugappa are not just iconic names but also venerable brands in the Chennai business world. TVS has seen the four families, part of the group, go their separate ways legally. Each one of the four families in the erstwhile TVS is now chalking out its own independent business strategy. The Murugappa group, too, has many family branches. This one too appears to be letting the individual families pursue their own business interests. Still, the family holding company is intact and appears to bind the Murugappa families together. The open revolt by Valli Arunachalam, the elder daughter of late MV Murugappan, however, put the spotlight on the Murugappa group. Fortunately, both Valli and the Murugappa group have chosen to smoke the peace pipe. Coming as it does against this backdrop, the decision by Ambadi Investments (the holding company of the Murugappa group) to sell its entire 2.27% stake in EID Parry has set tongues wagging. The open market sale has fetched Ambadi Rs 190 crore. Does the stake sale have any connection with the peace pact with Valli? One tends to quickly correlate the two. Has the Murugappa group chosen to let Valli cash out? That option remains the realm of possibility with the stake sale by Ambadi in EID Parry.
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White Knights, co-option, corporate alliances and the like were quite in vogue in former times. They played handy roles in helping companies – especially of the owner-driven ones – to ward off take-over threats. Examples are dime a dozen in the corporate world of Tamil Nadu where they threw ring-fences around vulnerable outfits to check-mate raids by unwanted or undesirable entities. This had indeed helped many stressed outfits from falling into the BIFR fold, thanks to those friends in need who played Good Samaritans. The promoters of Bank of Madura (since merged with the ICICI) sought the help of Kotak Mahindra to ward off takeover threat from AC Muthiah of SPIC fame. Likewise, Pradip Kothari reached out to MV Arunachalam of the Murugappa group to stop the threat of Reliance satellite outfits from taking over of KICL (Kothari Industrial Corporation Ltd). Under new management, KICIL has now sold its fertiliser factory in Chennai to Coromandel Fertilizers of the Murugappa group! Son-in-law of late Raju, promoter of Raasi Cement, looked up to N. Srinivasan of The India Cements to stop raiders on track. Autolec, too, went to Sundaram Fasteners to ward off takeover attempts by multinational firms. In the evolving regulatory environment and following the arrival of IBC (Insolvency and Bankruptcy Code), things have gotten tougher for struggling owners to retain the ventures they have founded. The Good Samaritans of former times are either not there or wary of playing the rescue role in the changed context. Surely, that is hurting some original entrepreneurs in Tamil Nadu.
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What’s in a brand? Well, brand is a powerful communicator. Often, it survives its creator and owner. A brand has the capacity to trigger universal appeal. Sometimes, a brand requires to be freed from the clutches of its owners. That’s very important for its longevity. That is easier said than done, however. It takes the owner to think and act beyond personal wishes to make an institution out of his/her brand. Indeed, an owner/creator has to have a strong sense of objectivity and courage. A couple of top brands from Chennai not only survived the test of time but have also become truly national now. In the 90s, scalability issues saw the late S Viswanathan let go Enfield, the company his family founded. His son Kapil has gone to create Krea University. Today, Enfield under Eicher has taken the iconic bike Bullet to a new height. Bullet is a global brand now. Not long ago, the owners of Butterfly had chosen to let Crompton take over the company. Butterfly is a household name in the kitchen appliances spaces in the Southern part of India. With Crompton stepping in, Butterfly has taken a national wing. Being successful in business is one thing. It’s statesmanship in them that tests the longevity of their brands.
“Go Green” has become the new mantra. Countries across the globe are striving hard to ensure a cleaner environment. The key here is eco-friendly batteries. Not surprisingly, scientists and researchers alike are burning midnight oil to discover an alternative to Li-ion batteries. “Go Green” can be a realistic endeavour only if an alternative is found to Li-ion batteries. This Chennai-based firm appears to have hit upon a solution. Ram Charan Company Private Ltd has just become the first company to be granted a patent in the solid state battery using sodium as a key material. The proof of concept on solid state sodium silicate batteries has been in development since 2021. Claimed to be a breakthrough work, solid state sodium batteries are likely to be tested in real time applications by 2024-end. The breakthrough initiative could have far-reaching implications for EVs (electric vehicles), space programmes and the like. Can a fully recyclable product sans toxic residue, solid state sodium silicate battery be made commercially in an affordable manner? Ram Charan’s founder Kaushik Palicha feels he can. This Chennai firm – which is doing pioneering work in the area of waste management -rose from obscurity to national limelight when it attracted $4.1 billion investment from a U.S.-based private equity in 2021. Public sector SAIL has, in fact, roped in Ram Charan to manage waste in some of its plants. Well, “Go Green” is set for a big boost.
There are a few things common about these three. They are all from very illustrious groups in Chennai. All of them had their sunny years in the past. And, all of them are listed entities. WS Industries, Coromandel Engineering and Kothari Industrial Corporation (KICL) were indeed jewels in the crown of Tamil Nadu once upon a time. For assorted reasons, all of them have become a distant memory. But these are names that have tremendous brand equity. Not surprisingly, these three once-upon-a-time iconic companies – nay brands – are now getting a fresh lease of life. Well, all these three companies have seen a change in their ownership. A new management is already in position at KICL, and is trying to bring the yester-year glory back to the Kothari brand. Through a series of initiatives such as getting big into footwear, drones and the like, the new leadership is working at a frenetic pace to reignite the power of Kothari. The much revered Murugappa group, in the meanwhile, has palmed off Coromandel Engineering to affiliate-entities of a top functionary of a ruling DMK party in Tamil Nadu. Coromandel Engineering, in fact, had built some of the iconic structures in Chennai. WS Industries, a leading manufacturing company once upon a time, too, has come under the fold of a group which is into property development. All these three newcomers get listed firms through the inorganic growth route.
Businesspersons in this part of the world are usually perceived to be quiet doers. Often, they are attached with the tag of `conservatists’ by the world outside. But these so-called `conservatists’ were pioneers in very many ways. First corporate school (Thriveni Academy), first corporate film company (GV Films), first leasing firm (First Leasing), first corporate hospital (Apollo), first hostile takeover (of Wendt India by CUMI)…. and several such firsts … all happened in Chennai. This little known company from the city of Chennai attracted $4.1 bn investment from the American fund TFCC International in December 2021 and became a talking point in the business media. Ram Charan Company Private Ltd, founded by Kaushik Palicha, has since gone quietly to pen a pact with the Steel Authority of India (SAIL) to put up a pilot project for carbon capture and utilisation. What has surprised the long-time India business watchers is the fact that a public sector undertaking of the SAIL kind has chosen to take the lead-role in striving to roll out a robust waste management system across its units. If this pilot cooperative initiative succeeds, it is bound to trigger a huge transformation in the way the Indian production environment is managed. If grapevine has to go by, a top industrial house is also picking up a cue or two from the SAIL gambit. Well, innovators and risk-takers are aplenty in Dravadian land it appears.
This is one of the oldest chambers in the country. This industry body is over 100 years old now. The Southern India Chamber of Commerce Industry (SICCI) is indeed an iconic association in Chennai. The SICCI was promoted ostensibly with the idea of serving the Indian business by protecting and promoting its interests at the regional, national and international levels. Indeed, SICCI was the founder-member of the Federation of Indian Chambers of Commerce and Industry (FICCI). SICCI saw eminent industrialists from Chennai such as AC Muthiah, MA Alagappan, A Vellayan and like heading it at one point or the other. Ar Rm Arun, son-in-law of AC Muthiah, is now serving as its president. SICCI has chosen to change. This move put the spotlight on the century-old chamber. SICCI has decided to constitute a Core Advisory Council (CAC). More than its constitution, what has surprised many is the power vested with the CAC to oversee the induction/ replacement of the executive committee members. CAC is also sought to be vested with powers to recommend right candidates for top positions at SICCI, which has hitherto been the domain of the board members. Why CAC at all? With CAC in place, what will be the role of the executive committee? Surely, SICCI is set for interesting times ahead.
This was one of the respected industrial houses in Tamil Nadu. Once upon a time, this group was at the forefront leading the State industrialisation. Brothers DC Kothari and HC Kothari were respected names in the Indian corporate world then. Post their demise, Kothari House was in the news for all wrong reasons. An internecine feud broke out between cousins Pradip Kothari (son of DC Kothari) and Shyam Kothari (son of HC Kothari) when Shyam (son-in-law of Dhirubhai Ambani) bought into Pradip-controlled KICL. The dispute between them took legal overtones. In the end, the case went in favour of Pradip. Several years have gone by since then. Today, KICL has changed quite a bit. A new management is in place under the leadership of J Rafiq Ahmed. Ahmed is firmly in the saddle with his own set of professionals. He is now working hard to bring the yester-year glory back to KICL. As KICL breaks into new areas such as digital, drones, footwear et al, it is looking to attract overseas investors. A leading investor from an oil-rich nation appears to have been impressed by the initiatives of Rafiq Ahmed. A turning point in the annals of KICL appears on the cards!
Tamil Nadu is known for its iconic business families. TVS, Murugappa, Amalgamations, Rane, Spic et al – the list can go on and on. They are to a large extent responsible for the early industrialisation of the state. The foresight of the elders of these industrial houses has pushed Tamil Nadu into the national forefront. Of course, many multi-nationals have come into the state since then. But these traditional industrial houses have to tackle a problem of an unusual kind. When families expand, fissures creep in. How best are these handled? That is indeed a big challenge. In the not so distant past, the Murugappas have put an end to the internecine quarrel with a female member by penning a peace accord. Some months ago, the four branches of the illustrious TVS group legally went their own ways in an extraordinary arrangement. The Murugappas perhaps are likely to follow the TVS template. What is this TVS model about? According to grapevine, the key to the TVS model is the generosity of big members (in terms of their market capitalisation) who chose to adequately compensate others who were managing businesses that had inherent growth limitations. The early apportionment of businesses among different branches allowed some to get high growth fields and others not-so-high growth businesses. The appreciation to erase the initial disadvantage is the stand-out feature of the TVS model.
The traditional joint family system in India has the unique way of sorting out skirmishes among different branches. An informal red line defines the limit within which each member conducts himself/herself. Ostensibly the objective of this informal understanding is to foster a sense of family unity for generations to come. When a female member of a branch Valli Arunachalam, elder daughter of late MV Murugappan, chose to take the internecine quarrel public and the topic became a discussion subject in social media for long, this Chennai-based industrial group and the estranged female member smoked peace pipe for the larger good. For the elders of the Murugappa group, family unity has all along been paramount. Hence, the daughters have stayed away from the business. They have played no small role in sustaining the unity of the Murugappa family. If grapevine has to go by, daughters are never included as part of the promoters in Murugappa group. Not surprisingly, daughters’ shares aren’t considered as part of the promoters’ holdings. The shareholdings of wives, however, are part of the promoter holdings! This philosophy has worked well for the group since it was founded. No murmurs from daughters all along. The Valli episode appears to be an aberration. A closer reading of the recently-released statement on the peace proposal appears to suggest that the Murugappa family is keen to sustain family unity for generations to come.
It is one of the oldest private banks in the country. And, this private lender is over 100 years old. A Nadar community-floated bank, Tamilnad Mercantile Bank (TMB) has consistently found itself hitting the headlines for several years. An internecine quarrel between the promoter groups saw it lose control to the Ruias of the Essar group in mid-90s. But the Ruias faced resistance and had to give it up somewhere along. In came the serial entrepreneur C Sivasankaran. But he too had to retreat. After several twists and turns, TMB went public in September 2022. TMB remains in focus for all the wrong reasons. Sometime ago, the income-tax officials conducted a search at its headquarters in Thoothukudi (formerly Tuticorin). It has returned to focus yet again now. The TMB publicly corrected itself for quite a number of errors in its annual report for 2022-23. At least half-a-dozen discrepancies – some minor and a few major – have crept into the annual report. The private lender, a few days ago, was forced to come out with a corrigendum in a local publication. The corrections related to numbers in some places. In still others, it pertained to the shareholding of the directors. Big or small, a slippage is a slippage. Is there a sense of nonchalance in preparing the annual report? Perhaps, TMB is still adjusting itself to the post IPO situation.
He is a veteran in the field. He had a successful term as the head of a public sector insurance firm. When the government opened up the industry for the private sector, he was among the first to get into the private sector space. But he chose to do differently. Star Health Insurance, the company he floated, was not the usual insurance company that a commoner comes to know. His was a daring initiative. Star Health was the country’s first standalone health insurance. Today, it is a highly successful one. V Jagannathan, who founded Star Health, has completely come out of it. An active person like Jagannathan, who has an abiding interest in Tamil literature, can’t keep idle. If grapevine has to go by, Jagannathan is seriously contemplating his next move. For a veteran in the insurance field like him, there must be plenty of options. Will he float an insurance firm yet again now that the non-compete period is over? Speculations are indeed doing the rounds. A little bird however suggests that he should be looking deeply at unexplored terrain in the insurance space. Is there any? Yes, indeed. There are possibilities beyond the subject of human insurance. Cattle insurance space offers immense scope. In a country like India which strives hard to boost farm economy, cattle insurance is an interesting subject to explore. Why not?
They have been in the news for all wrong reasons. One of their own members dragged them to the court. That member happens to be a female, adding a gender twist to a corporate feud — should we say domestic dispute. More than the legal battle, what has been hurting the group most is the negative publicity that the whole issue was getting them. To be sure, the family members of the Chennai-based $ 5-billion Murugappa Group have shown extraordinary restraint in the face of an avalanche of media reports which featured the versions of Valli Arunachalam, the elder daughter of late MV Murugappan who was the head of Carborundum Universal. Post his demise, Valli and her sisters insisted that they be accommodated in the businesses of the group. Valli even reportedly suggested that they be bought out in the group. All of a sudden on a leisurely Sunday (Aug 20), both sides have agreed to bury the hatchet and settle amicably out-of-court. This could put an immediate end to the washing of dirty linen in public. They have a 90-day window to work out an amicable deal to part ways. Will there be a friend in need for the family to get Valli off their back? Well, interesting times are ahead at Murugappa Group.
Legacy issues seem to bother this one very much. Ageing plants are a constraint for it. In a cost-push kind of situation, this is not a happy position to be in. A combination of escalating input costs and age-induced restrictions in the efficiency of plants has hit India Cements hard. This has proved a huge disadvantage for this cement maker to boost production. Caught in a pincer-like situation, this Chennai-based cement major headed by N Srinivasan is trying hard to return to normal. Making a detailed presentation, Boston Consulting Group has indicated that it is possible for India Cements to pare cost by Rs 200 a tonne. India Cements has already engaged FLSmidth and Krupp Polysius to suggest ways and means to refurbish its old plants. All these of course need funds. At the end of June 2023, it had a debt of Rs 2940 crore. At least Rs 400 crore is required for working capital needs and CapEx programme. Well, India Cements is looking to raise at least Rs 100 crore in the next couple of weeks. No doubt, it has a huge land bank. That is like a back-up cheque. The road ahead is long. Yet, there is a sense of optimism.
Words such as cartel, price fixing and the like are the creation of a bygone era. Today, they have yielded a new term. Cooperative competition is the fresh name of the game. This has embraced all fields. The next edition of the popular IPL (Indian Premier League) is a few months away. Yet, there is an intense debate. Will he or won’t he? As fans were speculating on whether Mahi will come back to play the next edition of IPL, MS Dhoni indicated that he would play IPL one more time for the sake of his adorable fans. CSK owners will want their skipper to stay put. Mumbai Indians (MI) owners, too, must be nursing the same wish for their own enlightened self-interest! Streaming IPL matches for the first time in several languages, Jio Cinema, belonging to MI owners, took the rival Disney Star (Star Sports) head on with zooming viewership during the last IPL season. Looks like Ambanis are wishing that Dhoni plays IPL 2024 edition. The IPL streaming saw Jio Cinema registering record viewership across languages when Dhoni played. Revenue and valuation improved significantly for Jio Cinema. All these augur well for Jio Cinema to get ready for an eventual public float. Co-operative competition appears to be a fair game. Well, it’s cricket after all.
Change is the only constant, it is often said. The change, however, gives a clue or two to the inner dynamics. How else could one view this? Well, the Cement Manufacturers’ Association (CMA) has welcomed a new president in Neeraj Akhoury, who is the Managing director of Shree Cements. Just before his ascension to the top slot, the CMA has managed to ink a wage pact with the unions. The industry has seen eight such national cement wage settlements in the past. A fresh pact was due in April this year when the earlier wage agreement expired. It took a long while to strike a new wage agreement since the unions were insisting that the issue of temporary workers be resolved first before deliberating on a fresh wage pact. Only 18% of the workforce in the cement industry is permanent employees. Obviously, the unions were worried over this increasing trend in the industry. Similar pay for similar jobs is what the unions were demanding irrespective of the permanent or temporary tag attached to a workman. Hopefully, the recent wage accord did manage to find a way out to this thorny issue. The latest industry wage agreement comes months after India Cements went on its own to strike an independent agreement with the unions. Some churning is happening around the industry, it appears.
There was a time when growth was the focus of many enterprises. Soon enough, this has given way to a new mantra. The corporate honcho realised mere growth is of no use. The growth has to be accompanied by profitability. So, the emphasis turned to growth with profitability. As the focus shifts, so much has changed in the global business environment. Not surprisingly, Corporate Social Responsibility (CSR) has become a critical component of the corporate growth process. In fact, CSR has been made mandatory for corporations through a legal requirement. And, companies have to necessarily apportion a specified percentage of its profit process to activities related to CSR. That, perhaps, is the good thing that has happened. For, corporations have a larger responsibility towards society. Well, CSR has now come to occupy a new meaning, at least informally in the corporate world. And, the HR (human resources) team has now begun to identify a section of employees within an organisation for classification as CSR. There are dead wood. There are those about to retire. And, there are those who just come into an organisation through a quota system of recommendatory kind. These people are now termed as “CSR guys”. They are also there but don’t serve. Well, the CSR guys are a cost indeed for corporations!
TRENDS & VIEWS
Editor’s Note: Big Punch In Small Pack
It is the Third Anniversary of Short Post and as a news media startup launched during the Covid-19 pandemic it certainly feels better than good to find ourselves where we are today. Here, I must cite the unstinted support of our seasoned contributors, all senior editors in the country, who brought a great degree of maturity and sagacity to the Short Post newsroom. But for them, our tagline “Authentic Gossip”, an Oxymoron, would not have matured viably. Our user numbers may be small but our stories have created the desired impact among people who matter — decision makers and influencers. We offer a big punch in a small pack and Short Post with its 225-word stories has been punching above its weight category. Having posted close to 3,000 stories in the last 36 months, Short Post, I feel, is an idea whose time has come.
And this is vindicated by our two marquee advertisers – IDFC FIRST Bank and ICICI Lombard. Both believed in our story and have supported us from Day one. A big thank you to both.
If you look at the media landscape – print, TV and digital — it is a mixed bag. There are job losses as some outfits have closed down while a lucky few were bailed out by large corporate houses. Yes, there is a lot of action in the digital space. However, the entry of corporate houses has raised the question of independence of news media outfits. Sadly, there are just a handful of independent media outfits in the country that are highly respected for their neutrality. At Short Post, our credo is not to take sides, prejudge issues or be biased but, informing readers of behind-the-scenes happenings. In essence, Short Post strives to be a neutral editorial platform — neither anti-establishment nor pro-establishment.
As I said last year, disruptions in the media world are moving at a fast and furious pace. Technology is playing a very big role in how content is generated and consumed. But, we are neither alarmed nor perturbed as it is all a part of the evolution process. What gives us comfort is that AI is unable to create original gossipy content. And that is the news arena where we have achieved a distinction.