Ajay Piramal Quits As Md Of Morarjee Goculdas

Ajay Piramal, chairman of most Piramal group companies, has quit as managing director and whole-time director of Morarjee Goculdas Spinning and Weaving Co Ltd, (MGSWCL). He will now remain only as the chairman of the company. Urvi A Piramal, his brother's wife, is being elevated to executive vice-chairperson from joint managing director. A new face, P K Gothi, is being inducted into the board as executive director. With this, the company's board strength has risen from 10 to 11.

These are part of changes aimed at relieving Ajay Piramal from day-to-day charge of the company. Gothi's appointment as a whole-time director will be effective for five years from January 22.

 

At the annual general meeting held on May 15, the company obtained shareholders' approval for both the re-appointment of Ajay Piramal as chairman, Urvi Piramal as vice-chairperson as well as P K Gothi's induction to the board. The three directors will not be liable to retire by rotation. The shareholders also approved the hiving off of the company's saw and drills businesses into new companies. The saw and drills wings of the tools division, called Miranda, are being transferred as going concerns to joint venture companies.

MGSWCL has entered into a 50:50 joint venture with American Saw and Manufacturing Co Inc (ASMC) for making saws under the aegis of Miranda Amsaw Pvt Ltd.

P K Gothi's appointment on the board was necessitated as Ajay Piramal will now be more involved in the strategic and long-term business plans for the company.

Gothi, who is currently the chief executive officer in the company, will take over all the functions of managing director from Ajay Piramal. However, he will not be officially designated as such.

The present MGSWCL board has 12 directors, ten being appointed by shareholders and the other two, A V Ganapathy and S M M V Krishnarao being LIC and IDBI nominees, respectively. The other members on the board are D M Popat, B S Mehta, K S Basu, H M Kothari, P B Modi, P D Ojha, C M Hattangadi and D S Parekh.