Kumar Mangalam Birla appointed as vice chairman of Century Textiles1 min read . Updated: 31 Oct 2015, 01:14 AM IST
B.K. Birla, present chairman of the group, has earlier said in several interviews that he wanted his grandson to take over his flagship firm
Mumbai: BK Birla group-controlled Century Textiles and Industries Ltd on Friday appointed Aditya Birla Group chairman Kumar Mangalam Birla as vice- chairman of the firm. The firm did not divulge further details.
In a filing to BSE, Century Textiles said that the decision had been taken at a meeting of the company’s board of directors.
B.K. Birla, chairman of the group, has said in several interviews that he wanted his grandson Kumar Mangalam Birla to take over his flagship firm Century Textiles, which has interests in cement, rayon and paper.
However, there has been no formal transfer of power.
According to people familiar with the situation, this is clear sign that in line with his grandfather’s wish, Kumar Mangalam Birla will lead the firm. B.K. Birla is unwell and has distanced himself from the running of his firms.
An Aditya Birla Group spokeswoman declined to comment.
Aditya Birla Group firms have a 45.22% stake in Century Textiles.
Kumar Mangalam Birla has been consolidating his control over Century Textiles through the past few years, the people cited above said. The huge real estate holdings of Century Textiles in central Mumbai makes it the most valuable firm in the BK Birla group.
According to an 8 September filing to the BSE, Kumar Mangalam Birla chaired the 118th annual general meeting held on 28 July. According to the filing to BSE, B.K. Birla suggested to the directors that Kumar Mangalam Birla be asked to chair the meeting in his place.
Century Textiles gained 1.01% to close at ₹ 554.40 per share on Friday on the BSE while the benchmark Sensex lost 0.68% to close at 26,656.83 points.
Aniek Paul in Kolkata contributed to this story.