Date:17/07/2004 URL: http://www.thehindubusinessline.com/2004/07/17/stories/2004071703010300.htm

Back Birlas want proper valuation of assets

Santanu Sanyal

Kolkata , July 16

THE Birlas feel that there should be a proper valuation of the assets and property of the M P Birla Group of Companies. "A proper valuation is important in view of various figures being quoted in newspapers about the value of the M P Birla Group companies," according to sources close to the Birlas. "If a proper valuation is done, the actual figure may be lower than what is being quoted," it is felt.

The sources make it clear that the hospitals, schools, planetariums and other such institutions being under trusts should not be considered part of the group companies. The Bombay Hospital in Mumbai was set up by R. D. Birla, the father-in-law of Priyamvada Birla, as early as 1951 and the Belle Vue Clinic in Kolkata by M.P. Birla in the sixties. There are a number of schools and other institutions, as the late M.P. Birla was known for his charity and philanthropy.

The flagship company of the M P Birla Group is Birla Corp, originally Birla Jute set up at Birlapur near Kolkata as early as 1918. Birla Jute was the first manufacturing unit of the Birla Group. Set up by G.D. Birla, it was originally a jute goods manufacturing unit, but subsequently diversified into calcium carbide, linoleums, synthetic yarn and cement. The three M P Birla companies in cable-related operation are Birla Ericsson Optical, Vindhya Telelinks and Universal Cables. The two other units of the Group are Birla Kennametal and Hindustan Gum. Indian Smelting, in which the G P Birla Group held the majority stake, was run by the M P Birla Group. Hopefully, the company will now be returned to the G P Birla Group.

About the future course of action, the sources make it clear that the "first step will be to obtain a copy of Priyamvada Birla's will," failing which the Birlas will move court.

"There are various legal courses open to them," the sources observe. Despite the lawyer's letter sent to Mr Lodha, no certified copy of the will was made available to the Birlas till this evening.