Thapar group supremo L M Thapar has worked out a new allocation of responsibilities between him and his two nephews, Vikram and Gautam Thapar, in Ballarpur Industries Ltd (Bilt). The restructuring of management responsibilities, which precedes the division of the L M Thapar groups assets, is reported to have caused serious differences between L M Thapar and Vikram.
Under the new allocation, Gautam Thapar will get independent charge of Bilt Chemicals the companys chemicals division. The paper division, Bilt Paper, will be overseen by L M Thapar with the help of Vikram. However, the day-to-day operations will be handled by the newly appointed executive vice-president for paper, Rajiv Wadhera. Wadhera, who had earlier quit Ballarpur, has recently rejoined the company and is part of Thapars plan to induct professional managers to run the various businesses.
It has also been decided that the liabilities of the non-paper business of Ballarpur Industries will be transferred to Bilt Paper.
Sources said the fresh restructuring has caused considerable dissatisfaction to Vikram. A section of the Thapar family is believed to have objected to the fact that Gautam has been given independent charge of the chemicals business, while Vikram is saddled with an executive vice-president who will look after the paper business on a day-to-day basis. The decision to transfer the entire liabilities of Bilts non-paper businesses to Bilt Paper has also come in for criticism.
Under the new allocation, Vikram Thapar will now spend more time helping his father, I M Thapar, run the Calcutta-based KCT & Bros (Coal Sales) Ltd. The cash-rich coal trading company, which is controlled by I M Thapar, is reported to have extended loans and bailed out other Thapar group companies on numerous occasions.
The changed dispensation has already been conveyed to the Thapar House staff through a series of office circulars. In a recent internal circular, L M Thapar stated: Because paper is a core business, I will personally be devoting more time to it. Vikram Thapar will be devoting more time to look after the affairs of KCT & Brothers CS Ltd.
Attempts by Business Standard to get in touch with L M Thapar and Vikram Thapar over the last two days proved futile.
In its last board meeting in September, the board of directors of Ballarpur Industries had cleared a trifurcation of the company into three separate corporate entities: Bilt Paper, Bilt Chemicals and Bilt Investments. March 1998 has been fixed as the deadline to complete the asset division and Price Waterhouse appointed to work out the details.
After the meet, L M Thapar had announced that he would be the chairman-cum-managing director of the three companies, with Gautam and Vikram functioning as joint managing directors in all three companies.
However, Gautam was to assist L M Thapar in the chemicals business, while Vikram was to assist his uncle in running the paper business.
The trifurcation plan was adopted in a bid to resolve persistent differences within the Thapar family. An alternative plan was also considered, under which the Thapar group would have been split into three distinct parts, with no cross-holdings.
The three new groups would be headed by Gautam, Vikram and Karan L M Thapars third nephew respectively.
