By Venkatachari Jagannathan
Chennai, Nov 12 (IANS): Will Murugappa Group's M.M. Murugappan continue as the Chairman of listed Carborundum Universal Ltd as well as the Executive Chairman of the Murugappa Corporate Advisory Board (MCAB) or will there be a change is what is being speculated at the Rs 381 billion diversified industrial conglomerate.
On Wednesday, three of the listed Murugappa group companies - Cholamandalam Investment and Finance Company Ltd, Coromandel International Ltd and Tube Investments of India Ltd - announced Murugappan was stepping down as their Chairman and as Director.
According to the statutory filings by the three companies, Murugappan, as he turns 65 on November 12, and wishes to pursue philanthropy and other interests as mentioned by him in his letter to the Board.
However, the listed company Carborundum Universal managed and run by Murugappan was silent on the retirement issue.
Murugappan also continues to be the Chairman of Cholamandalam MS General Insurance Company Ltd.
The Board of Directors of Coromandel International elected A. Vellayan, as their Chairman of the Board with effect from November 12.
Vellayan, who ran the group's fertiliser business earlier, makes a comeback post retirement. He was earlier the Executive Chairman of MCAB.
"It is something unusual. Perhaps the fertiliser business is now on uptrend and Vellayan is a respected person in the industry. Till a next generation family member is ready, Vellayan may be there at Coromandel International," a senior official in the group told IANS preferring anonymity.
According to the official, the same logic may apply in the case of Carborundum Universal as Murugappan was closely involved in its management and knows the business very well.
Carborundum Universal is largely a technical company and Murugappan was involved with it for several decades.
The next seniormost family member of the Murugappa group is M.M. Venkatachalam, a Director in the listed sugar major E.I.D. Parry (India) Ltd.
"Perhaps the seniors (Murugappan and Vellayan) would like to handhold the next generation for some time before passing on the baton," one of the Directors in the group company told IANS preferring anonymity.
The transition to the next generation may need about one/two years, said insiders.
Part of the next generation is Vellayan Subbiah who is the Managing Director of Tube Investments of India Ltd and also the Chairman of Cholamandalam Investment.
The other notable of the next generation is Arun Alagappan, Managing Director, Cholamandalam Investment. He had earlier run the group's cycle business under Tube Investments.
The Managing Director of Parry Enterprises India Ltd, M.A.M. Arunachalam (also known as Arun Murugappan), is another Murugappa family member who on Wednesday was appointed as a Director in Tube Investments.
According to group insiders, the Murugappa group is cash rich and all the companies are doing well, perhaps barring E.I.D. Parry owing to sugar's cyclical nature.
Meanwhile Murugappan was not available for comments when contacted by IANS.