It's business as usual for the $7-billion-plus conglomerate Mahindra Group with the shares of flagship M&M spurting 4.5 per cent last week despite its chairman Keshub Mahindra being sentenced by a Bhopal court for the Bhopal gas tragedy case.
Reflecting the confidence, analysts say Anand Mahindra is capable of leading the group successfully in the eventuality of his uncle Keshub, who as non-executive chairman of Union Carbide India was handed over two years imprisonment for the tragedy that took away 20,000 lives 26 years ago, quits.
CNI Research Chairman and Managing Director K P Ostwal said: "The company is being run professionally and Anand Mahindra is doing well."
SMC Capitals Equity Head Jagannadham Thunuguntla echoed similar views: "The next generation of the Mahindras is quite able to hand the company fairly."
These comments assume significance in the wake of reports that Corporate Affairs Minister Salman Khurshid has asked his ministry officials to look at legal position to check if Keshub could be barred from any company board on account of the court sentence.
Notwithstanding the developments, investors have remained firmly behind the group and the flagship company Mahindra & Mahindra's shares surged 4.41 per cent to Rs 604.40 a share on June 11 from Rs 570.260 at the commencement of trade on June 7, the day of the Bhopal judgement.
Anand came on board in 1992 as deputy managing director and he became vice-vhairman and managing director four years ago. Prior to joining M&M, Anand was vice-chairman of Mahindra Eugine Steel Company, promoted by his late father Harish Mahindra, cousin of Keshub who has two daughters.
Incidentally, Anand had gone out of the country even before the Bhopal judgement and is at present in South Africa to promote group company Mahindra Satyam as the sole Indian sponsor in the ongoing soccer World Cup.
While the group has refrained from making any formal comment on the development, Anand has made several comments on Twitter from abroad. Responding to several queries, Anand said, "at a time like this there is little that one can say to counter the tidal wave of emotions that need an outlet. Keshub Mahindra is my uncle and was a non-executive chairman of UCIL and a number of other companies...I have not tweeted simply because it would have been inappropriate at a time of tragic re-living of the horrific incident."
Group spokesperson Roma Balwani, who earlier had said that Keshub would prefer to appeal against the court order within the stipulated 30 days period, did not reply to email queries and phone calls on whether there are any succession plans in case Keshub quits the Mahindra board.
