Disenchantment with management, reduced role behind absence Though appointed director last year to handle his new projects through Century and form a new division,
C K Birlas plans were scuppered by Century's bad performance in 96-97
CK Birla, one of the largest shareholders of Century Textiles, will stay away from its annual general meet in Mumbai today in a move that could signal his disenchantment with the B K Birla led management of Century.
His offices in both Delhi and Calcutta confirmed that C K Birla, currently in Calcutta will not be flying to Mumbai for the meet, which would have been his second as director of the company.
The move could be a reaction to his reduced role in Century, which, he, along with MP Birla control through their 50 per cent stake in Pilani Investments, the holding company.
Though appointed director last year to handle his new projects through Century and form a new division, his plans were scuppered by Century's bad performance in 1996-97. The company's profits fell 98 per cent to Rs two crore and it made a loss in the second half.
Thereafter, the management decided to shelve all planned projects costing over Rs 1,000 crore and C K Birla was left in the lurch. Subsequently, he denied all reports that he was upset with the Century management or was walking out of the company.
His office in Calcutta said yesterday that he was busy and would not be available for comment.
Birla was appointed director last year after he agreed to drop his moves to sell his holding in Pilani Investments, the Century holding company, in return for implementing his projects through Century Textiles. C K Birla along with M P Birla controls 50 per cent of Pilani, which in turn controls 35 per cent of Century. B K Birla, chairman of Century holds only 25 per cent in Pilani.
Sources close to C K Birla denied again that he was pulling out of the company. "He is still a director on Century. He has other board meetings to attend in Calcutta and how can he leave it to attend an AGM," they asked.
The Century AGM in its 100th year is likely to be a stormy one with shareholders demanding explanations for the company's poor performance. B K Birla, the chairman will also be not attending and in his absence, S K Birla will be chairing the meet.
Though Century is well-established in certain industries like textiles, its future is clouded by poor prospects in several of its industries like cement, shipping, rayon yarn etc. Since it is already well diversified, investors, financial and foreign institutions are unlikely to support its plans for a further diversifiication., which is inevitable if C K Birla is to set up his own division and implement projects.
