Spic Meet Today, Focus On Muthiah Scion

The Spic board will meet tomorrow, its first sitting after th5e demise of its chairman, M A Chidam-baram, in January last.

Billed a routine meeting to consider third-quarter results of the company, it has, however, evoked considerable interest among group observers as critical indicators of Ashwin Muthiah's role in the company's future are expected to emerge.

Ashwin Muthiah is the son of A C Muthiah, the current vice-chairman and president - VCP - of Spic. Muthiah junior is already a director on the board of the company. A C Muthiah, is widely expected to become chairman of the company, a post held by the late M A Chidambaram.

 

The crucial issue then is: will Ashwin Muthiah immediately done the mantle of VCP.

While Ashwin Muthiah has openly stated his readiness to take over active management of the company, it is not clear if this can happen right away. Interestingly, Ashwin Muthiah has reportedly given up his status NRI status to assume more direct managerial responsibilities in Spic.

A C Muthiah, it is said, is very keen to ensure that his son's induction to active management of the flagship SPIC, is smooth and that it be carried out without upsetting the applecart.

Until the mid-90s, Spic did not have the post of a managing director and was headed by a vice-chairman and president _ A C Muthiah _ who had functional heads reporting to him.

But, with the creation of the post of a managing director _ a position held by P R Sundaravadivelu since inception _ a new reporting hierarchy came into vogue where the functional directors reported to the managing director, who in turn took up matters with the vice chairman and president.

A compromise formula being suggested is the creation of the post of vice-chairman alone for Ashwin Muthiah.

This way, it is felt, his elevation to the top slot can be ensured even as the existing structure remains undisturbed.