Unique Model Binds Murugappa Group’s Extended Family, Just Compensation For Every Male Heir Is Done Equally?

What holds a business family together? Just about everything. But, when it entails an extended family, then the task become more daunting. One Chennai-based conglomerate discovered the right formula many summers ago, to navigate the business cycles smoothly while also keeping the assorted wings of the larger family well and truly satisfied. The Murugappa group employs a house-keeping entity that has largely been instrumental in fairly compensating male members of the extended Murugappa family. They may all be differently talented but, when it comes to compensation, each of them (read every male heir) is treated on par. This entity came in handy especially when the group established a Murugappa corporate board and went in for a group branding in the ‘90s. The board members and others in the family were largely paid compensation through this unlisted house-keeping entity. A public limited outfit, this house-keeping firm doesn’t include any family members as directors. It was structured in such a way to avoid action under the MRTPC lens. A little birdie tells us that female heirs in the family aren’t fortunate enough to enjoy identical benefits. That may explain the cause for the open rebellion demonstrated by Valli Arunachalam, whose father MV Murugappan, former executive chairman of Murugappa group, expired a few years ago. This family enterprise makes for a fascinating story, all the same.