Promoters of Sanghi Group attack each other

The family feud involving promoters of the Rs 1800 crore, Hyderabad-based Sanghi Group has taken an ugly turn with the warring brothers attacking each other physically during the annual general meeting (AGM).

 

Here is a transcript of Vishwanath Pilla and Suresh Venkat's comments on CNBC-TV18.

 

Hyderabad's prominent industrial house the Sanghi Group is headed for a split. The relations between the four Sanghi brothers--Anand, Sudhir, Ravi and Girish--are tense.

 

Earlier, the brothers had agreed to a settlement, with each getting 25 per cent of the group's assets. The valuation process is already underway, but things turned ugly at the group's AGM. Differences cropped up when Sudhir Sanghi objected to a proposal by Ravi and Girish to raise Rs 1500 crore to fund the group's expansion plans. Even as the fight turned physical, the brothers say they are working on pushing the settlement process forward.

 

Sudhir Sanghi, Managing Director, Sanghi Group, said, "We are seriously working on solving the issues. One person, whom I don't want to name, is rigid. So, everyone has to make the compromise if the issue needs to be resolved and part ways."

 

Girish Sanghi, who is also a member of the Rajya Sabha on a congress ticket, refuted the charges. He blamed his brothers, Anand and Sudhir, for the ongoing tussle.

 

The assets that they are fighting over are as follows:

 

The Sanghi family holds a 50.89 per cent stake in the group's flagship company Sanghi Industries.

 

The group has two listed entities, Sanghi Industries and Sanghi Polyesters , which are into cement and polyster, respectively.

 

The group also has a land bank of around 2,600 acres at Sanghi Nagar on the outskirts of Hyderabad, and a few closely held firms that are into publishing, spinning and zip fasteners. The group is also working on a plan to set up a SEZ near Sanghi Nagar.

 

The recent events at the AGM make a peaceful settlement between the brothers even more difficult. Adding to the group's troubles is the fact that except for their cement business, all the other companies are making losses. Moreover, the feud's not helping matters, as it erodes investor confidence in the company.