Jeh Wadia returns as director of group companies

Jehangir (Jeh) Wadia, younger son of group patriarch Nusli Wadia, has rejoined the boards of group companies, marking his return to the business after a three-year hiatus during which he had relocated to London. This follows discussions between Jehangir, 51, and Nusli Wadia, 81, in London, aimed at persuading the son to return, use his expertise to support group operations and take on some of his father’s responsibilities, said people with knowledge of the matter.

Jehangir had made news in March 2021 when he abruptly quit all Wadia boards to settle in London with his family. It was then suggested that the family was keen to relinquish executive roles as part of a strategic decision by promoters to ensure better shareholder returns, while staying on as shareholders.

Nusli Wadia has been at the group’s helm for around 60 years. “But he probably thinks it’s time to infuse younger entrepreneurial energy from within the family to work alongside the professionals,” said an executive close to the matter.

Jehangir’s family resides in London but he will now spend significantly more time in India to lead the companies, said the people cited. Wadia Group did not comment.

“It is indeed a good thing for the group and business that the senior Wadia has been able to get his son to return,” said a top executive who has worked closely with the younger Wadia. “Jeh is a clear strategic thinker and has great analytical skills. He has an exceptional ability to read a business situation well and put a plan in place.”

Jehangir has been reappointed to a non-executive role in Britannia and is expected to take charge of Bombay Dyeing as managing director, said the people cited above. He had led GoAir, currently undergoing bankruptcy resolution, until 2021 as managing director.

Elder brother Ness, 53, is the managing director of Bombay Burmah and National Peroxide. He and his father are on the boards of all companies, including flagship and cash cow, consumer firm Britannia Industries. Nusli Wadia is in overall charge of all Wadia companies but keeps an especially close watch on Britannia.

Group seniors had also been advising Wadia senior for a while to bring Jehangir back into the management to ensure business continuity, along with succession planning, said the people cited above.

The 288-year-old Wadia Group’s publicly traded companies — Britannia, Bombay Dyeing, National Peroxide, Bombay Burmah — have a combined market capitalisation of Rs 1.38 lakh crore. Two of these have been listed for over a hundred years. Bombay Dyeing has declared uninterrupted dividends for over 125 years, while Bombay Burmah was the second company to be listed in India.

About 80% of Indian businesses are family-owned. Only a fifth of Indian family businesses have a succession plan in place, according to a 2023 Grant Thornton report.

“Indian family businesses are a curious study of duality and age-old traditions playing out in a multitude of mixed perspectives – the idea of a tight-knit family and professional unit juxtaposed against culturally imposed hierarchies and taboos. These clashing perspectives and ideologies are demonstrated in the trend of succession planning in family businesses across the nation,” the report said.

The real estate-to-food group, one of the oldest conglomerates in India, has had a long engagement with real estate as well. Between 1908 and 1956, it helped build five housing complexes on more than 35 acres of prime property in Mumbai for the Parsi community—Nowroz Baug, Rustom Baug, Bai Jerbai Baug, Cusrow Baug and Ness Baug. In 2011, the group launched Bombay Realty to develop office spaces, hotels, residences, serviced apartments and public spaces.