Date:12/04/2005 URL: http://www.thehindubusinessline.com/2005/04/12/stories/2005041202760100.htm

Back Who will take over the Jindal group mantle?

Preeti Mehra
Ambarish Mukherjee

New Delhi , April 11

THE succession of the late steel baron O.P. Jindal, who was the group chairman, will come up as his four sons go back to their working desks and respective companies from Tuesday.

The formal selection of the next head of the family, traditionally called Rasam Pagri, is being held at the family home in Hissar today, where usually the eldest son takes over the mantle from the father.

And, within the next few weeks it will become clear if the family tradition will extend into the business as well. A decision would have to be taken on who will succeed as group chairman. Or will each brother choose to go his own? All eyes are on the family to see how smooth the succession process is.

The issue of next chairmanship would come up in the subsequent annual general meetings of the four main group companies controlled by the four brothers, even if it does not surface in the next board meetings scheduled later this month for considering the annual results.

The eldest son Mr Prithvi Raj Jindal controls Jindal Saw Ltd (Rs 1,700 crore approx.) and its group companies. The second son Mr Sajjan Jindal controls Jindal Vijaynagar Steel Ltd (Rs 5,000 crore approx). Third son Mr Ratan Jindal controls Jindal Stainless Ltd (Rs 3,000 crore), the largest stainless steel company in the country, and the youngest Mr Naveen Jindal controls Jindal Steel and Power Ltd (Rs 2,500 crore), the largest coal-based sponge iron company in the country.

According to senior officials in the group, the turnover of the group for March 2005 is likely to be more than Rs 13,000 crore. O.P Jindal, during his lifetime had delegated power of each of the companies to one of the sons, who independently ran their own businesses, with him at the helm.

However, a few years ago he had stepped down from chairmanship of Jindal Saw and Jindal Vijaynagar. And when he pulled out from chairmanship of Jindal Saw, Mr Prithvi Raj Jindal, Vice-Chairman of the company, was elevated to the post. But when he gave up the mantle of Jindal Vijaynagar, Mr Sajjan Jindal, Vice-Chairman at the time, was not elevated to chairman but Mr Prithvi Raj Jindal was given the responsibility. Mr Sajjan Jindal is still Vice-Chairman of the company. Now it is the companies Jindal Stainless and Jindal Steel and Power that will have to decide on their chairman. Both Mr Ratan Jindal and Mr Naveen Jindal are Vice-Chairman. Will the Jindal brothers prefer clearly demarcated identities for each company or would they continue to seek the shade of the Group umbrella is now a Rs 13,000-crore question.