Family working to solve differences: Lalit Modi

K K Modi group promoters are trying to reach an amicable solution over the differences between family members on managing the group’s assets, the late businessman’s eldest son, Lalit Modi, said on Wednesday. On Tuesday, Modi, the flamboyant founder of the Indian Premier League, had said that several assets of the group will be put up for sale as family members could not arrive at a consensus on continuing to hold on and managing the assets. The conglomerate owns businesses such as cigarette maker Godfrey Phillips India Ltd and agrochemical producer Indofil Industries Ltd.

“GPI (Godfrey Phillips India) is not fully conversant with the efforts of the Modi family to find an amicable solution to some issues that are in the process of discussion,” said Modi.

While Modi and his family—mother Bina, sister Charu and younger brother Samir—own a 47.09% stake in Marlboro maker Godfrey Phillips India, Philip Morris Global Brands, the owner of the Marlboro brand, holds 25.1%.

“While the family does not want to enter into a discussion in the public domain, what needs to be clearly understood (is) that all family members are working on a solution to safeguard the interest of all shareholders,” said Modi, who is in London since 2010, after facing various charges of financial irregularities in running the T20 cricket league.

In a series of tweets on Tuesday Modi said he had proposed the sale of the family trust’s assets and family-run businesses because of various factors. “There are concerns about the manner in which my branch and I will be treated, now that Mr KK Modi is no longer alive, fuelled in part by some unilateral actions/decisions that have been taken after the demise of Mr KK Modi without even a semblance of consultation,” he said in a document posted on the microblogging site.

Inducting strategic investors into the group companies will help them better tap the market opportunity, said Modi.

“As someone who has launched and built businesses, and someone who is deeply conversant with global best practices and corporate governance conventions, I believe that the best possible solution is if we, as a family group, and majority shareholders allow new strategic investments into the group. This is the only way to tap the growth potential of this market comprehensively. Attention to this issue is crucially important to all concerned and the future of the company,” he said on Wednesday.

Other Modi family members want to continue to hold and run the trust’s assets.

In his tweets, Modi also posted documents stating his opposition to the appointment of Bina Modi as the managing director of Godfrey Phillips India and Indofil Industries. Bina Modi was appointed chairperson of holding company Modi Enterprises in November. She was also appointed president and MD of Godfrey Phillips India on 14 November.