Super Cassettes Plans Hotels Venture

Putting the family feud on the backburner, Super Cassettes Industries (SCIL) is now planning to diversify into constructing and managing hotels and resorts.

"We have already selected Kulu Manali as the first site for our resort,'' SCIL managing director Bhushan Kumar told UNI here.

However, plans regarding the same are in a very initial stage. "We have not yet decided on the size of the project and other finer details. We will be working on these details now," he added. The hotel is expected to be functional within two years, Bhushan Kumar, son of late Gulshan Kumar, added.

The hotel business will be hived off as a separate business unit. The company also intends to come out with a public issue to raise funds for the hotel projects. "We will be divesting equity only in the hotel business while the music units will continue to be a closely held one," Kumar said.

 

Starting with Kulu Manali, SCIL intends to cover all the major tourist destinations in the country.

The company will also be getting back to film production , an exercise which was stopped mid-way by Gulshan Kumar after a few of his films bombed at the box-office. "We will also be going ahead full stream into purchasing audio rights of movies and other musical albums," said Kumar.

They will also be releasing a movie Papa the Great in June. This movie, produced by SCI, had been lying in the cans for quite some time.

SCI, he said, expects to end the current fiscal with a Rs 350 crore turnover, which is 25 per cent higher than the previous year's Rs 280 crore.

However, Bhushan Kumar stated that neither he himself nor uncle Kishan Kumar would step in front of the camera. "We now have our businesses to manage and we can not be managing the show and acting at the same time. Though my uncle (Kishan Kumar) will occasionally do a music album, but he will not act in any film now," he added.

The Kumar family is presently torn apart because of a feud to control one of the group companies -- Tony Electronics (TEL), which produces magnetic tapes for audio and video cassettes.

The family has, in fact, been divided into two factions -- one has Bhushan Kumar and two of his uncles Kishan Kumar and Darshan Kumar while the other has the estranged brother of late Gulshan Kumar, Gopal Krishan.

Bhushan Kumar alleged that his uncle had, after his father's death, started making illogical demands and wanted total control over TEL.

We have already given him Rajni Industries and Gopal Soaps and Detergents. These are the two companies which my father had left for him and they are the only ones that he owns. He doesn't have any say or stake in the other group companies, Kumar added.

The junior Kumar recently slapped a legal notice on his estranged uncle and granted him 30 days time to either withdraw usage of the 'artistic work' and 'Trademark' of T-Series or improve the quality of products being manufactured and marketed with the T-Series logo.

Kishan has not been taking proper care of the companies -- Gopal Soaps and Rajni Industries. Due to his mismanagement, the companies have not been performing well. What's more, even the quality of the products that are being produced by him are deteriorating which is having a bad effect on the T-series logo. We (Bhushan and his two uncles -- Darshan Kumar and Krishan Kumar) have asked Krishan to withdraw the logo within 30 days," Bhushan Kumar had said.

Bhushan Kumar had stated that the mismanagement is resulting in loss of reputation for his company. He had also alleged that instead of concentrating on improving the businesses in hand, "He (Krishan) chose to irritate the family members with various demands."

"There is already a lot of confusion in his company and I can not risk the image of my company by associating the logo or the trademark with him or his companies," he added. While Bhushan Kumar has said the tussle is over now and his uncle (Gopal Krishan) has settled for Gopal Soaps and Rajni Industries, Krishan maintains that he owns TEL and legal action will be taken against anyone stopping him from entering the premises of the company.