Tussles between promoters and business partners, family splits and boardroom fights leading to court room drama aren't unusual in the Indian corporate sector. However, instances of successful fightbacks by widows to protect their deceased husbands' corporate interests from a truant business partner are rare.
Even when India Inc's sentiment lies with the aggrieved family, as is the case with YES Bank (co-founded by brothers-in-law bankers Rana Kapoor and Ashok Kapur), the fightback isn't easy, say many industry players, analysts and academicians. In India, the track record of promoter groups in managing fallouts isn't exemplary, says eminent business historian Dwijendra Tripathi.
"Barring a few exceptions, most groups that split have declined. The record of fightback by widows has not been very bright either," he adds.
Industry old-timers feel perhaps, the most successful instance of a widow taking a corporate battle to the enemy is that of Vidya Manohar Chhabria, wife of takeover tycoon Manu Chhabria of the Dubai-based Jumbo Group. In 2002, Manu Chhabria, a non-resident Indian, had left behind a business empire estimated at about $1 billion, spread across 50 countries. His legacy also included a spate of legal battles, the prominent ones being a dispute with his brother Kishore Chhabria and a tussle with former business partner and liquor baron Vijay Mallya for the control of Shaw Wallace & Company (SWC). Though initially reluctant, Vidya Chhabria took charge of the Dubai-based Jumbo Group and its varied businesses and, along with her three daughters and a team of professional mangers, managed the business empire. In 2005, three years after Manu Chhabria's death, the Chhabrias ceded control of SWC to Mallya for Rs 1,300 crore, after prolonged negotiations. Family relationships bear the brunt of any fightback. Tripathi cites an instance when Scindia Shipping's Narottam Morarjee passed away, leaving widow Sumati to manage the business. Though she managed well, in the process, she soured ties with Walchand Hirachand, a key promoter in the company.
In Chhabria's case, too, amid the souring relationship between siblings, Vidya Chhabria oversaw a division of Manu Chhabria's wealth among four heiresses - three daughters and her. However, this wasn't before a legal fight with her mother-in-law for a share of Manu Chhabria's wealth.
In another instance, in 1995, Nina Pillai, wife of biscuit king Rajan Pillai, alleged conspiracy in her husband's custodial death in Tihar jail. Rajan Pillai was involved in a series of bitter legal battles with the Wadia Group (for the control of Britannia Industries), as well as other business partners in Singapore. After a court-ordered enquiry, Nina Pillai was given a token compensation of Rs 20 lakh for medical negligence on part of the jail authorities. She didn't pursue her allegations of a corporate conspiracy in the death of her husband.
A key reason why an aggrieved spouse finds the odds against her in a fightback of this nature is exposure and involvement in running the business. A mere sentimental claim to a legacy may not prove very beneficial to the business' long-term interests. "In some cases, monetising the stake makes more business sense," says an industry old-timer who has advised many families in handling promoter conflicts. Tripathi believes the challenges faced by women in reclaiming business legacies should be seen in the context of social realities. "I believe the key challenges faced by women are the same as those faced by women in other walks of life," he says.
According to Vimla Patil, former editor of Femina, through the last two decades, India Inc has opened up to the idea of wives or daughters managing businesses. "The YES Bank issue is a one-off case; banking is one sector in which professional women chief executives have done exceptionally well," she says. Kavil Ramachandran of the Indian School of Business, Hyderabad, says: "At the time of setting up the business, partners have to build clear-cut policies on how to deal with unanticipated business situations such as the death of a partner or a difference of opinion among partners."
In case a spouse has to manage the business of a deceased husband, corporate experience is helpful, says Jyotsna Suri, chairperson and managing director, Lalit Suri Hospitality Group. Corporate honchos such as Suri, Thermax Group's Anu Aga or Apeejay Surrendra Group's Shirin Paul might not have faced challenges from their respective families when they took charge after the deaths of their spouses but external challenges abounded.
"I had to deal with business decisions the way Lalit (her husband) would have dealt with those," says Suri, who took charge of the business in 2006. What came in handy was her 20-year-odd experience in managing the hotel group, along with her husband. Now, her three daughters and son are involved in running different aspects of the business, she says.
HURDLES FACED BY WIVES FIGHTING TO PROTECT DECEASED HUSBAND'S BUSINESS LEGACY:
- Lack of corporate experience & involvement in business;
- Toll on interpersonal relations if business partner is from family;
- Lack of preparedness of children to take on business responsibilities;
- Minimal support from family members and friends;
- Partners not making provisions for unanticipated business situation, such as death of one of the co-founders
