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Marwari clan split on will saga

Kausik Datta in New Delhi | July 19, 2004 11:04 IST

The Marwari community, which own majority of the family-run business houses in India, is vertically split on the controversy over the Priyamvada Birla will that bequeathed Rs 5,000 crore (Rs 50 billion) worth of assets of the MP Birla group to R S Lodha.

While established industrial houses are siding with the chartered accountant and a former Federation of Indian Chambers of Commerce and Industry president Lodha, mid-rung industrialits, entrepreneurs and professionals are ready to back the Birlas to the hilt.

Birla vs Lodha: War over a will

Not a single soul is a fence-sitter in this battle royale. No one is, however, willing to go on record on the issue.

The Birlas are aware of the opposition that is gathering strength by the day. Under condition of anonymity, a Birla family member told Business Standard, "I know that a section of the Marwari Samaj, consisting of big industrial houses, is getting kick out of our plight."

A representative of a large corporate house in Job Charnock's city held the Birlas "responsible" for their plight. He felt that Lodha should not bend and give in to the Birlas' demand as he "earned" the assets from late Priyamvada.

The Birla detractors were also quick to point out that traditionally the clan is faction ridden and they could get united only in hours of crisis.

"The family is united to fight the war of will. Till yesterday, they lived like isolated islands. There have been many instances of mistrust and infightings among the Birlas. Had they been united all along, the situation would not have risen at all," said another big-ticket industrialist.

Mid-sized industrial houses and professionals, however, have all their sympathies for the Birla clan. They saw in Lodha "misuse of the trust bestowed upon by a respectable widow who carried herself with dignity when she was alive."

A chief financial officer of a diversified company said the "misdeeds of Lodha will have a bearing on the commitment of the professionals to the promoters".

Social scientists feel that the root of the phenomenon -- big-ticket corporate houses opposing the Birlas -- can be traced back to the history. They say the Birlas were the first Marwari, which successfully transformed into an industrial house from trade and, in the process, rubbed many other houses on the wrong side.

A jute industrialist said the Birlas "exploited" their proximity to the national leaders to acquire scores of licences without any intention of using them. Their intention was to pre-empt competition in the respective field. That triggered off hostility from the other camp. "Since the war of will has become a household name, the delight of the detractors of the Birlas come to the fore," he adds.

Maheswari bania by caste, the Birlas orginated from Pilani in Shekhavati region of Rajasthan. Sheo Narain was the first to move out of Pilani to Mumbai shortly after the Sepoy Mutiny in 1857.

He was into opium, silver, sugar and cotton trading. His son Baldeo Das was forced to move to Kolkata when Mumbai was threatened by plague.

By the time the World War I broke out, the Birlas were settled in Kolkata. They opened an office jute export office in London in 1917 -- the first case of Indian firm opening in England.

Divergent views

  • The Marwari community own majority of the family-run business houses in India

  • Maheswari bania by caste, the Birlas orginated from Pilani in Shekhavati region of Rajasthan

  • Established industrial houses are siding with the chartered accountant R S Lodha

  • Mid-rung industrialits, entrepreneurs, professionals are backing the Birlas


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