Harish Chandra Prasad to quit Lanco group

Yarlagadda Harish Chandra Prasad, one of the founder promoters of the gas-based Lanco Kondapally power project and its managing director, is quitting the Lanco group to form his own company that initially aims to build a 100 megawatt thermal power project-cum-coal washery at Chattisgarh besides water treatment plants on BOT, and real estate ventures in Andhra Pradesh among others.

A first generation entrepreneur, Prasad is credited with bringing new practices in corporate management besides building the Lanco empire.

Speaking to Business Standard on Wednesday, Prasad said he will be joining hands with Navabharat Ferro Alloys Limited, which incidentally is managed by his own cousin. "I can work on my own terms as both of us understand each other very well," he said. The new entity will be christened Malaxmi group, after his mother's name.

Terming the reasons for leaving the Lanco group as strictly personal, Prasad said he is planning to leave the Rs 1,200-crore Lanco Group by December 2005.

He holds one-fifth of the equity in the group while the remaining is shared among four of L Madhusudan Rao's family including his two brothers. Madhusudhan Rao became the chairman of the group after founder chairman Rajgopal decided to enter active politics and later became a Lok Sabha member.