Maharaja Whiteline board reportedly ousts promoter-CMD

A serious spat is brewing between Harish Kumar, the 50-something Indian promoter of Maharaja Whiteline Industries, and the latter’s French partner, the $5.2-billion Groupe SEB, the world’s largest home appliances company.

The former has denied having stepped down as chairman and managing director (CMD) of the company, to take a non-executive role in a board meeting yesterday. However, SEB says a resolution passed in the board meeting had replaced Kumar with a senior global leadership team member, Frederic Verwaerde, as the new CMD. Kumar is to now be only a non-executive MD. It has also said Sunil Wadhwa, an old hand in the appliances business, will become chief executive.

Kumar told Business Standard. “I continue to be chairman and MD.” He had, he said, a two-year term as executive MD, till December 2013. Also, Kumar, in line with Indian law, has the ability to stop any special resolution being taken up by the baord, as he has more than the required 26 per cent stake in the company to do this.

GROUPE SEB BRANDS

• Global: All-Clad, Lagostina, Krups, Tefal, Moulinex, Rowenta
  
• France & Belgium: Calor, Seb
   
• North America: AirBake, Mirro Regal, T-fal, WearEver
   
• South America: Arno, Penedo, Clock, Rochedo, Imusa, Samurai, Umco, T-fal, Panex
   
• Asia: Supor, T-fal (Japan), Maharaja Whiteline

When asked, Verwaerde told Business Standard: "The decision has already been taken at the board meeting yesterday. He is no longer the executive MD of the company from on Thursday. I am the new MD."

Adding: “Kumar's term as executive MD was based on a working contract, with certain parameters, including financial performance of the company. The contract has been broken, as the parameters are not being met.”

Kumar had sold 55 per cent stake this year in Maharaja, a well known Indian appliances brand. He retained 45 per cent stake and was overseeing the running of the company, as part of the agreement. He’d earlier sold his other ventures to Electrolux, after a bitter battle.

Groupe SEB has a range of popular global brands in the premium segment, such as Moulinex, Tefal and Rowenta. The French appliances giant has a little more than 20 product categories.

It has planned a big relaunch with the Maharaja brand name and products at Diwali next year. Plans are on the anvil to launch some of its international brands, such as products in the Tefal range.

And, to manufacture some of the international branded products in India, to enable major cost savings.