B K Birla plans to hike stake in group cos

Kolkata: On his 89th birthday, the eldest member of the Birla family has a wish for his grandson Kumar Mangalam Birla. The octogenarian is determined to increase his stake to at least 50% in those companies where the holding of the B K Birla Group is low so that Kumar does not face any hurdle in running the firms which he plans to bequeath to him. 

    According to the filings to the stock exchanges, the over Rs 11,000-crore B K Birla Group has less than 30% stake in two major companies which are goingto Kumar Birla. These are Century Enka and Kesoram Industries. The group stake in Century Textiles and Industries is also below 50%. But it is at a relatively comfortable level of just over 40%. The group stake in Century Enka is 25.23% and in Kesoram it is 26.5%. All these three companies are going to Kumar Birla. 
    "In whatever companies I give to Kumar, we should have a 50% stake. In a few companies we still have less than 30%,'' B K Birla told TOI in an exclusive interview. Birla pointed out that he would look at various options, including creeping acquisition, for raising stake. It may be noted that the B K Birla group has already been buying into group companies since September 2008. 
    Basant Kumar Birla himself has bought additional shares in Kesoram Industries. The group has raised its stake in Century Textiles as well. Kesoram and Century are the two biggest companies of the group. While Kesoram has a turnover of over Rs 4,300 crore, Century Textiles has a turnover of close to Rs 3,900 crore. 
    "We will raise our stake through creeping acquisition but it will take sometime. As far as I know, there is a limit on creeping acquisitions every year. We cannot do more than that,'' he added. It may be noted that the promoters can raise their stake up to 5% through the creeping acquisition route. according to guidelines. 
    Incidentally, B K Birla plans to give Mangalam Cement and Mangalam Timber to his granddaughter Vidula Jalan (daughter of Manjushree Khaitan) and her husband Anshuman Jalan. Mangalam Cement was the last company of the group which was handed over to Jalan. Jayshree Mohta, the elder daughter of B K Birla, is getting Jayshree Tea & Industries and ECE Industries. The group stake in these companies is more than 40%, except Mangalam Cement which was earlier supposed to go to Kumar. 
    The man who saw the evolution of Indian industry from its formative phase believes that India and China will become economic superpowers in the coming decades.

Kumar Mangalam Birla