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Nusli Wadia in business recast mode

Reeba Zachariah in Mumbai

After a low-key existence of over a decade, things are set to change at Neville House, the corporate headquarters of Nusli Wadia's Rs 3,000 crore- (Rs 30-billion) plus empire. Wadia has set the ball rolling on a restructuring of the group's businesses, which will see him exiting some unremunerative businesses as well foraying into others where he sees considerable value.

Wadia's sons, Ness and Jeh, are playing a pivotal role in the restructuring exercise. While non-viable businesses are being identified, the group has made a quiet entry into three new areas: information technology, entertainment and clinical research.

In IT, the group has floated an e-learning company. In entertainment, another company is promoting music albums. The group has also set up a studio. An entertainment magazine publishing venture will be launched next month. Finally, the group has a partnership with scientists for clinical research.

Jeh Wadia, group chairman Nusli Wadia's younger son, said: "We are looking at realigning the business portfolio within the Wadia group. It would mean exiting businesses that do not add value, as well as entering new ventures."

The Wadia group has a presence in businesses as diverse as petrochemicals, foods, dairy, textiles, real estate, chemicals, plantations and light engineering. The Rs 1,451-crore (Rs 41.51 billion) Britannia Industries and the Rs 932-crore (Rs 9.32-billion) Bombay Dyeing are the two largest companies in the group.

To aid in the restructuring, Jeh was last week appointed deputy managing director of Bombay Burmah Trading, a diversified group company that had tea and coffee plantations and trades in both products, apart from a presence in light engineering.

Jeh's elder brother, Ness, is already deputy managing director of Bombay Dyeing, the group's flagship.

Petrochemicals and textiles company Bombay Dyeing has lost a lot of sheen over the past 10 years and has been outpaced by Reliance Industries. It is now looking at depending largely on outsourcing for its textiles operations.

The flagship posted a record turnover of Rs 1,492 crore (Rs 14.92 billion) in 1995-96 and profits of Rs 117 crore (Rs 1.17 billion), but its performance had slipped since then.

But Britannia, in which Wadia has an equal stake with Groupe Danon of France, is the largest player in the biscuits business. The group's other main companies, National Peroxide and Citurgia Biochemicals, are fringe players in chemicals.

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