Saroj Poddar: New king of corporate takeovers?

Saroj Kumar Poddar may be known as a soft-spoken businessman from Kolkata. But he does not shy away from a fight. In the past two months, Poddar has jumped into two corporate takeover battles, report Nimesh Shah and Archana Shukla of CNBC-TV18.

Also read: Mangalore Chemicals at record high post Zuari's stake hike Poddar is the chairman of Adventz Group. This son-in-law of veteran industrialist KK Birla is giving UB Group's Vijay Mallya, Deepak Fertiliser's Shailesh Mehta, and Jupiter metals' Om Kothari sleepless nights. It has been 10 years since his bid for Nagarjuna Fertiliser failed. But Poddar has now drawn new battle-lines in the fertiliser space. Poddar who is also the promoter of Zuari Fertilisers and Chemicals hiked its stake in Vijay Mallya's Mangalore Chemicals and Fertilisers (MCFL) from 10 to 16 percent. A move that closely followed Deepak Fertilisers, picking up a little-less-than 25 percent stake in MCFL for Rs 180 crore in July. Though Poddar is keen on taking over his friend Mallya's MCFL, he is not making any attempt at a hostile takeover just yet. He claims the first right of refusal where MCFL is concerned. He may be meeting with Mallya regarding the future of the company soon. However, the entrepreneur has also been involved in hostile takeovers. Poddar jumped in through another group company Texmaco Rail to help the promoters of Kalindee rail stave off a hostile takeover by Jupiter metals. This was done through a 24.9 percent preferential equity allotment, which blunted the company’s open offer for a 30 percent in Kalindee. This preferential allotment will make Texmaco the largest shareholder in Kalindee Rail. Poddar: a trusted partner But, Poddar has also been known for being a follower of the rules, and has a long record of successful joint ventures. So, Kalindee's move to call on him for help is not surprising. Some of the high-profile joint ventures (JV) include Gillette India, which is a JV with FMCG giant P&G's arm, the Gillette Company of USA. The other is Hettich India Private Ltd, a JV with Germany's Hettich group. Preparing for a big leap? Experts say that these boardroom battles, which Poddar has now become involved in, may mark the start of a big leap. After all, he has been trying to take his USD 3 billion Adventz group to the next level since he became chairman in late 2008. With the group rumoured to be sitting on a war chest of Rs 1,000 crore in cash, an open offer for a Kalindee rail may not be a bolt from the blue.