Timber unit for BK’s grand-daughter

KOLKATA: Slowly but surely, a new succession plan is taking shape at the BK Birla group of companies.

Two days after altering his original plan to hand over the reins of Kesoram Industries to grandson Kumar Mangalam, the 86-year-old group patriarch on Friday hinted that grand-daughter Vidula Jalan is likely to get complete charge of Mangalam Timber Products.

Unlike Kesoram, this is much in line with the broad indications given out earlier.

Asked specifically, Mr Birla said: “Vidula is already a director on the board of Mangalam Timber. She will manage the company.” Ms Jalan is the daughter of Mr Birla’s younger daughter, Manjushree, who was originally supposed to take charge of Kesoram.

On Mangalam Cement, another company supposed to be handed over to Kumar Mangalam, BK babu, as he is affectionately referred to, was less specific. “Kumar Mangalam is very busy with his own business.

He is in office from morning till evening. He keeps telling me as long as I am fit, I must continue,” Mr Birla told reporters on the sidelines of Kesoram Industries’ 88th AGM on Friday. He also refused to comment on any timeframe or cite any reason for the apparent change of succession plan at Kesoram.

Kesoram Industries, a diversified company, has decided to invest close to Rs 1,200 crore in the cement and tyre businesses, which account for 85% of its turnover.

As part of the investment plan, Rs 700 crore will be used in setting up 1.6 mt of additional capacity at Vasavdatta Cement within the next two years.