Kumar Birla to preside over Century AGM today

In a move that indicates the beginning of a new era at Century Textiles, Chairman B K Birla tomorrow will watch his grandson and the Aditya Birla group Chairman Kumar Mangalam Birla preside over the company's 109th annual general meeting.

Confirming this, BK Birla told Business Standard: " Kumar Mangalam, for the first time, will preside over a general meeting of Century Textiles. I am sure he will chair the meeting better than me."

He, however, added that he would continue to be the chairman of the company. "Kumar Mangalam insists that I would continue to be chairman as long as possible. He will take over after I retire," the octogenerian Birla pointed out.

For Century Textiles, the motherload of family fortune, the appointment of a director as chairman of the annual general meeting is a custom being followed for many years.

In the previous many years S K Birla, a director, used to preside over the general meetings. SK Birla and CK Birla resigned from the Century board in February this year after the Kumar Mangalam "" B K Birla combine bought their holding in Pilani Investment, the holding company of Century Textiles. Kumar Mangalam had joined the Century board in February.

Long time observers said tomorrow's meeting would initiate the procedure of the formal appointment of Kumar Mangalam as chairman. " Kumar's taking over Century is a matter of time," an observer said.

Legendary Ghanshyam Das Birla acquired Century Textiles which later emerged as the jewel in his crown. During the split of the Birla empire, BK Birla got the management control of the company, without having the majority stake.

Other Birlas"" SK, GP""CK and KK"" had indirect stakeholding in Century through their stakes in Pilani Investment till last year when BK-Kumar Mangalam combine bought them out, barring KK Birla who continues to have a 7 per cent stake.

The B K "" Kumar Mangalam combine has a 50 per cent stake in Century now. BK had announced that he had bequeathed his stakes Century Textiles and Century Enka to Kumar Mangalam.

Kumar Mangalam Birla will also get nearly 15 charitable trusts that run 16 schools and educational institutes across the country and the Birla Academy of Fine Arts in Kolkata.

The trusts also look after BK Birla's interest in a host of unlisted companies.

Incidentally, Century would seek the shareholders' permission to restrict the number of directors to seven.

In other words, the company does not intend to fill up the vacancies which were created with the resignation of SK and CK Birla. In addition to BK and Kumar Mangalam, other directors are PK Daga, EB Desai, Arvind C Dalal, Amal Ganguli and BL Jain.