The Hindu Business Line : "There is complete harmony in the family... "

Every evening B.K. Birla plays the harmonium and his wife joins him in singing prayers. "My voice has become coarse but her voice still lilts," he says.

At 85, Basant Kumar Birla, the youngest son of G.D. Birla, referred to as BK Babu, was in a hurry, at least till recently. Not without reason, though. The ownership issue with regard to Pilani Investments and Industries Corporation Ltd had to be resolved fast. The death of Priyamvada Birla had changed the scenario.

"Also, we have become old; I'm 85, G.P. Birla is 82 and my elder brother, K.K. Birla, is 87. So something had to be done without delay," says B.K. Birla, sitting in his 15th-floor office at Birla Buildings in Kolkata.

Three months ago, members of the Birla clan met to resolve the Pilani issue. Finally, the agreements were signed on August 5. Interestingly, none of the Birlas put their signatures in the agreement. "I do not remember having signed any paper; our executives did everything."

How much does he, together with Kumarmangalam Birla, now hold in Pilani? "More than 50 per cent," comes the reply. When pressed on the exact figure, he says with a big smile, "Does it really matter as long as we hold more than 50 per cent?" Religious as he is, did he go to the temple after the signing? "We did go to the temple, but before the signing," he says.

Ever since G.D. Birla's death in 1983, there have been several meetings among the family members regarding ownership issues. By 1985, the ownership issues of all companies except Pilani Investments had been satisfactorily resolved.

In 1986, the Pilani issue came up for review. It was decided that B.K. Birla would be the Chairman of Century Textiles, in which Pilani held a 35 per cent stake. The board of Pilani was recast to induct C.K. Birla, representing the G.P. Birla group, and M.P. Birla, each holding 25 per cent stake in Pilani.

It was also decided that the Chairmanship of Century Textiles would automatically pass on to Aditya Vikram Birla, B.K. Birla's son, in due course. Since Aditya Vikram died in 1995, B.K. Birla continues to be Chairman.

After M.P. Birla's death, his shares in Pilani passed on to his wife, Priyamvada Birla. After her death last year, the ownership of the Pilani shares she held has been disputed. "We do not consider the shares held earlier by M.P. Birla as part of the promoter's group," B.K. Birla says.

K.K. Birla's shares in Pilani would automatically come to his younger brother, B.K. Birla. K.K. Birla holds about seven per cent equity — worth about Rs 100 crore — in Pilani. "Right now I do not have that much money and so I've told my elder brother to hold the shares for about a year or so. But he assured me that I need not worry and that he would gift the Pilani shares to me. I'm not going to accept the shares as a gift. I can take a watch or some such thing as a gift but not shares of such a huge value."

Looking relaxed, he adds that the payment has been made to G.P. Birla and S.K. Birla, the cheques have been encashed and the shares transferred.

What about other companies in which different Birla groups jointly hold stakes?

"There are 15 or so such companies but we are in no hurry to settle the ownership issue in these companies. There is no problem as there is complete harmony in the family in this regard, as it was in the case of Pilani."

The bulk of Pilani's investment is in the Kumarmangalam Birla-K.K. Birla group. For instance, in Century alone, Pilani's stake is about 35 per cent. The other group companies in which Pilani holds equity are Mysore Cement, under the S.K. Birla group; Sutlej and Zuari, under the K.K. Birla group; and Orient Paper, under the G.P. Birla group.

Now that the Pilani issue has been resolved satisfactorily, B.K. Birla may have to turn his attention to the succession issue within his own group companies, which are worth about Rs 10,000 crore.

Jayashree Tea, with 15 gardens all over the country, and producing about 20 million kg annually, would go to his elder daughter, Jayashree Mohta, and Kesoram, complete with cement factories and tyre units, to the younger daughter, Manjushree.

"I want to give Century Textiles and Century Enka to my grandson, Kumarmangalam, but he is in no hurry to take them," he says. "There are a few other companies in my group, much smaller in size, which too, I feel, should go to Kumar, but he wants me to look after these companies as long as I can. This is presumably because Kumar is so busy with his own companies. Also these companies were set up long ago, much smaller in size and, therefore, may not be of great interest to Kumar."

Then there are so many trusts controlling educational institutions, art galleries, music halls, and the like. Most of these will perhaps go to the daughters.

"I'm not bothered what happens to these institutions after my death; it is for them to decide how they will be run."

He takes pride in saying that his management style is moulded after his father, G.D. Birla. "I have followed him in toto. Perhaps we are old-fashioned by present-day standards," he says.

His son Aditya, the first in the Birla clan to be educated in a foreign university (MIT in the US), followed his father's style, partially.

However, he is not sure if the grandson too is following the same style of doing business. "It is not expected either. The world has vastly changed, the complexities of business have increased and Kumar has so many things to look after, but I must say he is excellent in his own way."

The core of Birla's management practices has been the "parta" system, which, according to him, is nothing but a cost-control exercise. Also, the loyalty and efficiency of those working under him have been a source of strength. "I've got some of the finest men working for me for 35-40 years with impeccable records and I'm really proud of them."

He concedes that the not-so-satisfactory equations with the powers that were did hurt his business interests from time to time. "But somehow we managed to weather the storm."

Birla and his wife have avid interests in art and culture and, for many years, the Sangit Kala Mandir — set up by them in Kolkata, organised performances by leading artistes.

"It was indeed a pleasure interacting with top artistes at a personal level," he says. The Birla Academy in Kolkata is again an excellent centre for arts.

At a time when many others in his family (including his son) chose to relocate to other parts of the country, Birla opted for Kolkata.

When asked what was so special about Kolkata, he quips, "What is so special about your wife and children to you? It is the same feeling. I'm brought up in this city, my children too were born and brought up here and even my grandson was born here. My family is part of this city."

Birla wakes up at 3.30 every morning, and his wife at 2.30 a.m. "We take a walk at 4 in the morning. My wife walks for about 45 minutes and I, a little longer. I come to office by 9.30."

Does he still play the violin? "No, not any more. I stopped playing the violin many years ago. But I play the harmonium every evening and my wife joins me in singing prayers. My voice has become coarse but her voice still lilts. Occasionally, my younger daughter joins us. Usually, only we two are there and it is a wonderful experience."

Does he have any regrets? "Regrets? No, no, there are no regrets. Why should there be any? God has given me so much and I'm grateful to Him. Despite personal setbacks, which we all have in our lives in one form or another, I've been able to sail through with God's grace. I do not have anything to ask for from Him."

Picture by A. Roy Chowdhury

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