The Hindu : Business : We have no fight with Tatas, says B. K. Birla

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Friday, Aug 18, 2006

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We have no fight with Tatas, says B. K. Birla

Indrani Dutta

`It was in mutual interest that K. M. Birla resigned'

KOLKATA: The Birlas have no fight with the Tatas, says one of the seniormost members of the Birla family — Basant Kumar Birla. "Tatas are good people," he said while talking to The Hindu.

Mr. Birla, who heads the B. K. Birla group of companies and regularly attends office at the group headquarters, `Birla Buildings', said it was in mutual interest that his grandson Kumar Mangalam Birla had resigned from the board of Tata Steel. "He is so busy these days with his own companies that he was unable to attend meetings," he said.

The senior Birla is also unwilling to see a link between the resignation and the spat between two of India's oldest corporate houses — the Tatas and the Birlas — over Idea Cellular. The Tatas declined to issue any statement on the development.

The issue is not a very important one, the 85-year-old Mr. Birla felt, adding that Mr. K. M. Birla's induction into the board of Tata Steel took place about eight years ago.

However, the shares that the Birlas hold in Tata Steel through their investment arm Pilani Investments would remain for now, Mr. Birla said. The holding, which can be traced back to the time of G. D. Birla, is not substantial, though. Mr. Birla said K, M. Birla had also resigned from the board of Maruti Udyog on grounds of time constraints. "Each meeting takes at least three to four hours, while an outstation meeting will consume a full day," he said.

It may be mentioned that Kumar Mangalam, who was an independent non- executive director on Tata Steel board, could attend only one board meeting in 2005-06. He did not attend the AGM.

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