The Hindu Business Line : Post-Priyamvada Birla era — MP Birla group may be handed over to trust

THE reins of the MP Birla Group, which has diversified interests in cement, jute, chemicals, cables, and other industries, may be handed over to a trust following the recent demise of Priyamvada Birla, chairman and wife of the late MP Birla, on last Saturday.

Sources in Birla Building, the headquarters of most of the Birla companies in the city, have come up with several names of people who may head the trust. Since 1990 (when her husband M.P Birla passed away) Priyamvada had been at the helm of all the group's activities

However, senior officials of the group said that there was no apparent heir of the MP Birla group, which has an approximate annualised turnover of Rs 2,000 crore and an asset base of Rs 5,000 crore. "In all probability the management and the ownership of all the companies of the group will be handed over to a trust," sources said.

The group companies are Birla Corporation, Universal Cables, Vidhya Telelinks, Birla Ericsson Optical, Optic Fibre Goa Ltd, Hindustan Gum & Chemicals, Birla DLW and Indian Smelting & Refining Co among others.

The group also runs established institutions such as Belle Vue Clinic, MP Birla Eye Foundation, Sout Point School, MP Birla Institute of Management, Bangalore, MP Birla Foundation Higher Secondary School and others.

Sources within the group said that Priyamvada had already hinted at such a succession plan almost one-and-a-half years back.

However, the spokesperson of Birla Corporation, the flagship company of the MP Birla Group, said a succession plan was yet to be worked out. No formal announcement was made on Monday either.

When asked who would be looking after the daily activities of the several corporate houses in the group, he said, the occasion was yet to arise.

"She passed away on Saturday. Sunday was a holiday. Today there was a condolence meeting at Birla Building and thereafter all offices within group were closed in her memory", the spokesperson said.