Diversified business house, KK Modi Group today announced an organisational restructuring with the setting up of a family council to ensure promoter interests in its businesses while roping in ex-IOC Chairman Sarthak Behuria to steer the corporate functioning.
The move is part of its strategy to become a $5 billion group in terms of market capitalisation in the next five years to be fueled by growth in domestic and global markets, the group said in a statement.
After the re-organisation, there will be three major governance bodies to help manage the group and promoters interests, Corporate Management Council (CMC), Corporate Executive Committee (CEC) and Family Council.
The CMC will be the apex decision making body for the group and will be chaired by KK Modi. His wife Bina Modi will lead the family council, while Behuria will be leading the CEC, the group said.
Commenting on the change, group Chairman KK Modi said:"As we embark on our next phase of growth, it is important that we professionalise the group and have the family members play a key role in helping us achieve our aspirations."
The group has a diversified portfolio of businesses in various sectors like tobacco, agri-chemicals, specialty chemicals, education, cosmetics, retail, direct selling, entertainment and restaurants.
Its main group firms include Godfrey Philips India (tobacco products), Modicare (cosmetics), Indofil (agro- chemicals) and Modi Apollo International Institute (eduction).
"Building on the strong business foundations that the group has established and the attractive Indian and global opportunities, KK Modi Group has set a bold aspiration to get to $5 billion in market capitalisation over the next five years," the statement said.
As per its official website, the current group size is estimated at about $2.2 billion.
It is being advised by consultancy firm Bain & Company in the re-organisation.
The CMC will act as a forum to make strategic business decisions pertaining to the group, in consultation with other promoters, it said
It will be chaired by KK Modi himself and will include the promoters of the group (BinaModi, Charu Modi Bhartia, Lalit Modi and Samir Modi) and independent directors, it said.
The CEC under the stewardship of Behuria will be resonsible for driving the group's portfolio strategy, support growth aspirations of the various operating companies.
It will also work to make transformational moves and accelerate international expansion via organic and inorganic means, it added.