104-year-old Chowgule Group being restructured; biz to be split between siblingsPTI | Mumbai | Updated: 14-01-2021 20:40 IST | Created: 14-01-2021 20:40 IST
After months of dissonance where the young family members had shown discomfort at business affairs in the over-a-century-old, reticent group, the family arrived at an amicable settlement of businesses on Wednesday in a meeting, a source told PTI.
As part of the settlement, termed as a group ''restructuring'' exercise, Padma Chowgule will get control of the mining, pellets, salt, shipbuilding and educational institutes, according to an official statement.
The 104-year-old group's restructuring will result into two separate groups and ''allows a diversified vision and approach, bringing focus to growth and expansion'', the statement said.
The fourth generation of the Mormugao-based family has sided with Padma, while Vijay Chowgule grouping will get the vehicle dealership, ship repair, Angre Port and warehousing businesses, the source said.
''The overall turnover of the group is Rs 2,500 crore and the businesses which Padma will be getting have revenues of less than half at present,'' the source close to Padma Chowgule said, adding that the businesses have better growth visibility.
Details on the debt profile and how it gets divided, and also on the division of immovable assets, were not immediately available.
Both the groups will be allowed to use the Chowgule name in their operations in the future and a no-compete clause will also get into effect eventually, the source said.
Padma's son Eshaan Lazarus and his cousins Arjun and Aditya Chowgule are active in the business, the source said adding that all the key family members from the fourth generation have sided with Padma.
''The next generation of the Chowgule family in the business will continue to support her,'' the statement said.
The undivided group has over 4,000 employees, the source said hinting that the Padma group may eventually look at some new identity.