Companies

Nopanys to ring-fence K.K. Birla legacy; to up stake in Upper Ganges, Oudh Sugar

Jayanta Mallick Kolkata | Updated on August 16, 2011 Published on August 16, 2011

Mr C. S. Nopany.   -  Business Line

Ms Nandini Nopany





Having secured their holdings in the two inheritances — Upper Ganges Sugar and Industries and Oudh Sugar Mills — the Nopanys, a sub-group of K.K. Birla conglomerate, now targets to raise promoters' stake to an “unassailable” position for predators.

Ms Nandini Nopany and Mr C.S. Nopany, eldest daughter and grandson of the late K.K. Birla, inherited these two companies along with Sutlej Textiles and Industries Ltd in 2008.

The Nopanys took around three years to “secure” Upper Ganges, but Oudh Sugar Mills was ring-fenced instantly after the demise of Mr K. K. Birla three years ago, on August 30, 2008.



Consolidation Move

“Significance of continuous hiking of stakes lay in the efforts in consolidation and ensuring security of holdings of Nopanys in businesses they inherited under a will with less than 51 per cent and with cross-holdings within the erstwhile KK Birla group,” said an old-time Birla hand.

However, they aim to reach the comfort zone of over 60 per cent, the source said.

In its financial year to June 30, 2011, Upper Ganges promoters raised stake to 51.75 per cent from 48.17 per cent. In the January-March quarter this year, promoters first crossed the threshold of 51 per cent.

In Oudh, promoters have raised their holding to 57.82 per cent from 53.95 per cent in the period between July 2010 and June-end this year.

The promoter-holding in Oudh, however, had been guarded against possible takeover threat in September 2008, by scaling it up to 52.16 from 47.84 per cent.

Sutlej, the third outfit of Nopanys, had around 64 per cent holding in August 2008, and continues to maintain that “comfort level”.

Published on August 16, 2011
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