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At a board meeting held on Tuesday, Khaitan, who has been on the board of Kesoram since 2001, was elevated to executive vice-chairman.
In an intimation to stock exchanges, Kesoram informed that Khaitan, a non-executive director of the company, has been appointed as whole-time director effective February 5, 2013 and the board has designated her as executive vice-chairman.
The move is, perhaps, the first step in giving shape to a succession plan finalised by Birla, who turned 92 last month. Birla will continue as the non-executive chairman of Kesoram. The company has revenues of around Rs 6,000 crore. It is not clear whether Khaitan will inherit Kesoram.
In 2010, on the sidelines of Kesoram’s annual general meeting, Birla had said Khaitan would take charge of the company and would be in constant touch with grandson Kumar Mangalam Birla.
“I would want Kumar Mangalam to be the chairman of the company, Manjushree can be the vice-chairman,” Birla had said two years back.
Kumar Mangalam Birla, however, is still not on the board of Kesoram, though he was inducted on the Century Textiles & Industries board in 2007. He is not on the Century Enka board either.
Earlier, Birla was often heard saying that he would like to hand over all major companies — Kesoram, Century Enka and Century Textiles — to his grandson, but he was too busy. He had, however, maintained that his daughter would get a part of it.
Birla’s will, made in July 2004, said that a company would be inherited by the person who was in charge of it and overseeing its day-to-day affairs. Under the formula, Khaitan and Jayshree Mohta were to get Kesoram Industries and Jay Shree Tea & Industries, respectively. Vidula Jalan, Khaitan’s daughter, was expected to inherit Mangalam Timber and Mangalam Cement. Jalan is on the board of both the companies.
