Yashovardhan Yash Birla, head of the Rs 800 crore Yash Birla group, has been anointed as the heir to the Rs 1,667 crore M P Birla group by his grand-aunt, Priyamvada Birla.
Birla group sources said the decision would soon be implemented. Priyamvada Birla, who runs the groups operations from Calcutta, is likely to take a back seat and let Yash Birla manage her empire, which consists of companies like Birla Corp, Vindhya Telelinks, Universal Cables and Birla Ericsson.
The exact modalities of the succession are being kept a closely guarded secret, but it is learnt that Yash Birla will become a trustee of the M P Birla Foundation, which holds a majority stake in various group companies. He will also be appointed to the boards of several M P Birla group companies.
Yash Birla has been closely associated with the M P Birla group since the death of his father, Ashok Birla, in an aircraft crash in February 1990. Priyamvada Birlas husband, Madhav Prasad Birla who passed away in July 1990 guided Yash through the initial transition and also deputed his trusted executives to advise the latter.
Although he is the closest male relative of Priyamvada Birla, Yash Birla has not been directly involved in the functioning of her group so far. He is neither a trustee of the M P Birla Foundation, nor a board member of any of the group companies. Sources say all that is set to change once the succession is formally announced.
The decision also scotches speculation that Priyamvada Birla might choose one of the daughters of K K Birla as her successor, instead of Yash Birla. She is said to be close to K K Birlas three daughters, Shobhana Shyamsundar Bhartia, Jyotsna Saroj Poddar and Nandini Bimal Kumar Nopani.
Priyamvada Birla could not be contacted as she was holidaying near Allahabad. Yash Birla could not be reached for his comments in Mumbai. Senior executives of the two groups professed ignorance about the decision.
The move will catapult Yash Birla to the helm of a nearly Rs 2,500 crore conglomerate with interests in cement, cables, precision tools and electrical home appliances, among others. It will also fulfil his fathers dream of having a presence in the cement industry.
Yash Birla group major Zenith already has a licence to implement a cement project. However, the Yash Birla group had to shelve its cement plans due to the sluggishness of the market. Now, Yash will get to manage the Rs 1,000 crore Birla Corp, a major cement player in Madhya Pradesh.
