S K Birla, C K Birla resign from board of Century Textiles

Sudershan Kumar Birla and Chandra Kant Birla have stepped down from the board of Century Textiles & Industries.

In an intimation to the stock exchanges, the company has informed that S K Birla, a director on the board of the company, has resigned as a member of the board with effect from February 17.

When contacted, B K Birla, chairman of Century Textiles & Industries, confirmed that both S K Birla and C K Birla had stepped down from the board of the company a few days back.

B K Birla added that he had personally asked both of them to continue for at least a year, but it was not convenient for them and hence the decision to step down.

The move by S K Birla and C K Birla to resign from the board of Century Textiles follows the consolidation of the combined shares of Kumar Mangalam and B K Birla in Pilani Investments in the second half of last year. Pilani Investments holds a 37% stake in Century Textiles.

B K Birla said that most of the shares of S K Birla and C K Birla in Century Textiles were through their holding in Pilani Investments. He added that with the buy-out of shares, neither S K Birla nor C K Birla has any shares in Century Textiles or Pilani Investments.

Last August, B K Birla and his grandson Kumar Mangalam Birla had bought out S K Birla's 7% stake in Pilani and GP-CK's 20% stake in Pilani Investments.

With the buyout, the B K Birla group became the largest shareholder in Pilani Investments with a 49%stake with the deal paving the way for handing over the reigns of the company to Kumar Mangalam Birla.

A couple of weeks back, Kumar Mangalam Birla was inducted on the board of Century Textiles as an additional director. B K Birla would continue to be the chairman of the company.

Apart from a 37% stake in Century Textiles, Pilani Investments holds shares in Indian Rayon, Hindalco, Grasim, Bihar Caustic, Birla VXL, Cimmco Birla, Jayshree Tea, Kesoram Industries, Mysore Cements, Mangalam Cement, Sutlej Industries, Zuari Industries and Tanfac.