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| Wadhawan family kicks off succession plan |
| BS Reporter / Mumbai Jul 28, 2009, 00:47 IST |
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The Mumbai-based Wadhawan group — owners of real estate company HDIL, finance company Dewan Housing Finance Corporation (DHFC) and retail chain Spinach — today took the first step towards a succession plan in their family-controlled businesses.
 Kapil Wadhawan, vice chairman and managing director of DHFC and his brother, Dheeraj Wadhawan, have stepped down from the board of HDIL, run by their uncle, Rakesh Kumar Wadhawan, and cousin, Sarang Wadhawan.
Similarly, HDIL executive chairman Rakesh Wadhawan and MD Sarang Wadhawan are expected to step down from the board of DHFL shortly, to give more leeway to Kapil.
However, the stakes held by the individuals in the respective companies is expected to continue for now, sources said. Dheeraj Wadhawan and Kapil Wadhawan hold 3.18 per cent stake each in HDIL, while Sarang Wadhawan and Rakesh Wadhawan hold 3.03 per cent and 8.42 per cent stakes in DHFL, respectively.
The move is expected to help both the cousins, Kapil and Sarang, to focus more on their respective ventures. After the rejig, Kapil and his brother, Dheeraj, would have more focus on DHFL and Wadhawan Holdings Pvt Ltd, which runs food and grocery retail and hospitality ventures.
Sarang and his father, Rakesh, would then concentrate on HDIL, which has ventured into entertainment, broadcasting and multiplexes, apart from launching affordable housing projects and SEZs in Mumbai, sources said.
“The respective businesses have grown and have diversified. The idea is to have greater business focus in the companies,’’ sources said.
When asked, Hari Pandey, deputy general manager, finance, HDIL, said: “Directors were finding it difficult to give time to each others businesses. Delinking of businesses was necessary in the interests of the companies.’’
After the move, the number of independent directors in HDIL will be more than that of other directors, which is a positive for HDIL, Pandey said. HDIL will have seven independent directors and four directors.
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