Sanghi promoters heading for split; valuation on

Sanghi promoters heading for split; valuation on
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First Published: Sun, Sep 28 2008. 09 43 PM IST

Family feud: Sanghi group’s Anand Sanghi.
Family feud: Sanghi group’s Anand Sanghi.
Updated: Sun, Sep 28 2008. 09 43 PM IST
Hyderabad: The promoters of Hyderabad-based Sanghi group are heading for a split. Of the four brothers who run the group, the elder two have lodged police complaints, alleging physical assaults by the other two.
The elder brothers, Anand Sanghi and Sudhir Sanghi, said on Sunday they were ready for a split and were seeking their legitimate share of 25% each in the assets of the group. Valuation exercise was on, they said.
Family feud: Sanghi group’s Anand Sanghi.
The group has two listed entities—Sanghi Industries Ltd, that runs cement business, and Sanghi Polyesters Ltd—and a few closely held firms that are in the business of print media (the group publishes Telugu newspaper ‘Vartha’), spinning and zip fasteners. The group also a land bank of around 2,600 acres at Sanghi Nagar, the industrial hub that hosts several of the group companies on the outskirts of Hyderabad.
Though the family has been trying to restructure the group, the elder brothers alleged that the younger brothers, Ravi Sanghi and Gireesh Sanghi, resorted to physical attacks on their family members when they objected to certain resolutions pertaining to fund raising at the annual general meeting of Sanghi Industries on Saturday.
Following the objections, which also included one raised by a key foreign investor—British Virgin Islands-based investment fund Spinnaker Group that holds a 26% stake—Sanghi Industries has indefinitely deferred the resolution, said Amit Sanghi, one of the promoters and son of Anand Sanghi.
Refuting the allegations, Gireesh Sanghi said both the elder brothers had ventured into businesses unrelated to core strengths of the group, mismanaged them and sunk huge funds.
“This has forced us to take a decision on parting ways and the business ownership restructuring is currently underway, taking into account the huge losses the elder brothers are responsible for. They want to have 25% of assets each and are asking us to equally bear the losses they are responsible for, which we didn’t agree to,” Gireesh, who is also a Rajya Sabha member representing the Congress party, told Mint.
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First Published: Sun, Sep 28 2008. 09 43 PM IST