Managing partners of Amarchand Mangaldas Suresh A. Shroff & Co, one of India’s most prominent legal firms today announced an amicable split and have decided to start separate businesses.
Two other branches of Mangaldas have agree to split and bifurcate into separate entities and the younger brother Cyril Shroff has agreed not to contest his late mother Bharti Shroff’s will. Furthermore, Shardul Shroff had decided not to litigate the will regarding the families’ settlement.
In an exclusive interview to CNBV-TV18, Cyril Shroff said his new firm Cyril Amarchand Shroff will be the largest firm in India on the day it launches, with over 580 employees.
Below is the edited transcript of the interview to CNBC-TV18.
Q: How is the business splitting?
A: I will take over the Bombay operations and he will take over the Delhi operations.
Q: It is as simple as that?
A: It is as simple as that.
Q: Do you have an agreement in place for non-poaching of clients?
A: Whatever is in the press-release is all that I can talk about.
Q: The press-release does not say anything about clients or anything like that.
A: We are full competitors and we are both mature people and will not do anything to destabilise each other. That is probably the best answer I can give.
Q: Non-poaching agreements for employees?
A: I think I said what I had to, did I not?
Q: But, that was for clients, right? Non-poaching of clients?
A: Clients are full competitors. I have no further obligation not to compete. As with any other compare in the market, we are both mature firms. Even in the re-incarnate.
Q: If you are not telling me whether you have a non-compete with Shardul or… (Interrupted)
A: I am not going to tell you. I am not going to answer that question.
Q: So, I assume then that you do have a non-compete with Shardul and you do have… (Interrupted)
A: Well, you can draw your own inferences.
Q: Well, if you just agree to say no, we do not, that we are competing in full 100 percent intent.
A: We are mature enough not to do anything silly.
Q: Well, what will it be like to compete with your brother?
A: I respect him as a professional. We will be on opposite sides on many deals as the firms and it is not just about Cyril or Shardul, it is about the larger firm.
Q: What is the strength of your firm likely to be?
A: The market will decide the pecking order going forward. But considering that is, we have already done a lot of hiring in preparation for the new firm and of course this is, we have not done any comparative check of what the others numbers are but I still think that Cyril Amarchand is probably going to be the largest firm going sheerly by the number of lawyers. We are just a little short of 600 of lawyers in month one. I have hired about a 100 people, a little over a 100 people in the last few months who will join me from the time that the new firm starts. And they will be joining at different… (Interrupted)
Q: If I have my numbers correctly, when you were combined or as of yesterday, you were a little over 700.
A: We were a little over 700 and we hired a lot more people who will be coming on board in the coming weeks as well. So, my current role call is that we would be about 580 people in the month of June/July.
Q: Cyril Amarchand Shroff will be 580 people in the month of June/July.
A: Absolutely, and over 91 partners.
Q: Over 91 partners? So, you have moved really fast, add to the roles in that sense?
A: Absolutely. There was a lot of internal promotions that were outstanding. So, that is part of it. And the balance is actual recruitment that we have done from the market.
Q: Because if I remember correctly, even combined, the two of you, or Amarchand in its erstwhile form, had less than 100 partners. You are saying now, in individually you will have 91 partners.
A: Absolutely. Because of internal promotions that we have done, hire that are on the way and which we are gradually unfolding because some of these people are actually moving out from their firms.
Q: I do want to talk about some of the transition issues that arised from such a split. Typically between you and Mr Shardul Shroff, you would just find a whole host of agreements, I am assuming which lay out who gets to operate in one geography if at all, unless both of you are now going to operate all-India. Whether there are any non-compete parameters because as of now, or as of yesterday, you were working together on a bunch of clients. Any non-poaching parameters, because you shared talent. How will it work from here on?
A: After the split we are going to be full-competitors and we are going to operate on a national basis. Part of the significant hiring that I have done is a New Delhi, proposed New Delhi offices. And going forward because of the governance model being more single leader oriented with a single managing partner, I will be able to move faster and grow much faster as well as in line with what the market requires.
Q: Can you give us some numbers on how many partners or how many employees did you inherit from the erstwhile Amarchand, how many have you added in the last few months as you have started working towards a separate identity? What the total numbers look like, not the total partners, but otherwise.
A: I do not immediately remember the break up. The last role call that we did as we are preparing for this is somewhere between 570 and 580 lawyers in month one.
Q: So, that is what you got as part of the split.
A: No, you take about 125 lawyers from that is what I inherited and the new addition that I have done and the new addition that I will continue to do going forward in the months to come.
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