SK, CK Birla quit Century Textiles

S K Birla and C K Birla have resigned from the board of Century Textiles & Industries.

The company has informed stock exchanges that S K Birla, a director on the board of the company, has resigned from the board with effect from February 17.

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 asked both of them to continue for at least a year but they did not find it convenient and resigned.

The move follows 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 37 per cent stake in Century Textiles.

B K Birla said most of the shares of S K Birla and C K Birla in Century Textiles were through their holding in Pilani Investments.

He clarified that currently with the buyout 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 grandson, Kumar Mangalam Birla bought out S K Birla's seven per cent stake in Pilani and GP-CK's 20 per cent stake in Pilani Investments.

With the buyout, the B K Birla group became the largest shareholder in Pilani Investments with 49 per cent stake, 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.

However, B K Birla would continue to be the chairman of the company. Apart from a 37 per cent 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 Ind, Zuari and Tanfac.