K M Birla now vice-chairman of Century

Kumar's mother Rajshree Birla is also a director on the company's board and joined the board in May this year

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The board of Century Textiles and Industries has appointed Kumar Mangalam Birla, chairman of Aditya Birla group, as Century’s vice-chairman, from Friday. Kumar, 48, is grandson of 94-year-old B K Birla, who is the chairman of Century Textiles. Kumar was a director on Century’s board. Century’s stock closed flat at Rs 554 a share on Friday.

B K Birla had earlier made it clear that Kumar would take over the reins of Century. In B K Birla’s absence, Kumar was chairing board meetings of the company. In May, Kumar's mother Rajashree Birla was inducted into the company's board.

B K Birla's son Aditya Vikram had died in 1995. This led to Aditya Vikram’s son Kumar taking over the reins of Aditya Birla group's businesses at 28. Since his takeover, the Aditya Birla group has grown to become a $41-billion entity, with operations all over the world.

B K Birla, also known as Basant babu, is unwell and currently living in Mumbai. B K Birla’s wife Sarala, a director on the Century board, died in March.

Apart from textiles and real estate in Mumbai, Century has a sprawling cement business which, analysts say, could be merged with UltraTech, owned by the Aditya Birla group. UltraTech is India's biggest cement company, with 67.7 million tonnes yearly capacity.  

Century Textiles has 12.8 million tonnes of yearly cement capacity. Kesoram Industries has 7.25 million tones yearly capacity. Both are B K Birla group companies.

In recent years, Aditya Birla group companies had increased their stakes in Century, to 50 per cent from 45 per cent, after conversion of a preferential offer of shares issued to the promoters in July 2014.  

In April, global firm Credit Suisse had said UltraTech could improve profits of B K Birla group’s cement assets by 50 per cent, and Century-UltraTech merger would be a win-win for all. The fair-trade watchdog’s deal approval might be needed in Maharashtra, Karnataka, and Madhya Pradesh.

According to Axis Capital, Century Textiles and Kesoram Industries would merge their cement units with that of UltraTech, in an all-stock transaction. The Birlas have not confirmed this.

For the financial year 2015 (or 2014-15), Century reported revenues of Rs 7,559 crore and net profit of Rs 15.5 crore. In the quarter ended September, the company reported a loss of Rs 24 crore on revenues of Rs 1,951 crore.