Industrialist Lalit Mohan Thapar has decided to divide his over Rs 3,500-crore paper, engineering and chemicals empire into three separate groups, each to be controlled by his nephews Vikram, Gautam and Karan Thapar.
As part of the succession plan, the post of the group chairman will be abolished after Lalit Mohan Thapars tenure with the three nephews running their businesses independently.
According to the plan, Vikram Thapar, who is the joint managing director of the group flagship Ballarpur Industries Ltd (BILT), will run the paper business of the company which includes four paper mills. But, this would not stop Gautam Thapar, who is also a joint managing director in BILT, from getting into the paper business.On his part, Gautam Thapar will oversee the Hyderabad-based A P Rayons and Pioneer Ltd, which controls The Pioneer newspaper, besides looking after the chemicals business, primarily caustic soda and chlorine, and agri-business in BILT. Incidentally, A P Rayons, which manufactures pulp, is considering a foray into the paper business.
The youngest nephew, Karan Thapar, will oversee Bharat Starch which manufactures speciality starch products besides Greaves Ltd and Crompton Greaves Ltd, the two Mumbai-based engineering companies.
Breaking his silence on the issue to Business Standard, Lalit Mohan Thapar said, I have looked into various permutations and combinations. I decided the best way is to have three independent groups to be run by the three nephews independently. There is no reason to have a group chairman at all. However, there will not be any asset division and the holdings will remain as they are now.
At present, while the day-to-day running of the various companies are looked after by the nephews, Lalit Mohan Thapar helps to formulate the overall policy and provide them a direction.
The latest decision will end the uncertainty over Lalit Mohan Thapars likely successor amongst the nephews. The uncertainty had come into the open in 1995 when the group chairman attained the age 65. As part of the will, L M Thapar had promised his father Karam Chand Thapar that he would step down as chairman of KCT Bros, the group holding company, at 65. However, he decided to continue as the group chairman.
