Shaw Wallace MD Ravi Jain steps down
shaw-wallace.com
Arijit De(Fe)
Mumbai, Oct 11: Shaw Wallace managing director Ravi K Jain, one of the closest associates of Manu Chhabria, has put in papers at the ailing liquor company following `differences' with the Chhabrias.
Jain's resignation, after three years at the helm of the company, comes in after his powers were greatly curtailed in recent months following the appointment of heads of both the beer and liquor divisions, who were asked to report directly to Chhabria in Dubai, say company insiders.
An official spokesperson of Shaw Wallace, when contacted, declined to speak on the issue. "If such decision has been taken by Jain, it is up to the Shaw Wallace board to accept it," he added. It is learnt that the board is yet to decide on Jain's resignation.
In a restructuring earlier this year, AS Sargunar and S Shamsuddin were appointed as executive vice-presidents of the company in charge of the beer and liquor operations, respectively. Till then, the beer and liquor operations were under direct control of Jain.
Chhabria, a non-resident Indian now based in Dubai, has not come to India ever since the Enforcement Directorate and income-tax authorities initiated probes against him in August 1996. He had last come to India in February that year to chair the Shaw Wallace annual general meeting.
In his absence, the Indian operations are controlled by Chhabria's daughter Komal Wazir Chhabria, presently on the board of both Shaw Wallace and Dunlop India. She has gradually been strengthening her influence over the companies.
Shaw Wallace insiders said that PL Narsimhan, the executive director (finance), and another of close Chhabria hand, after being away from the company for over two years due to prolonged illness is now back in charge of the crucial function.
Jain, a former UB group employee, had joined Shaw Wallace in 1994 as executive director. In April 1996, he was elevated to the post of managing director over Narasimhan with direct control of the liquor and beer operations.
Jain's resignation is the second instance of a close Chhabria hand stepping down from Shaw Wallace following major differences. In 1996, executive director Pradeep Mathur, who had been with Chhabria for 13 years--possibly the longest that any executive has ever stayed with him--had resigned and turned against Chhabria in his battle with the authorities.
Charges against Chhabria range from foreign exchange violations to income tax evasion, as well as siphoning of funds from Shaw Wallace. The company has been grappling with a huge outstanding debt liability of Rs 300 crore, essentially short-term loans raised at high rates to fund long-term expansions.
Over the last three years, Jain has not only solidly fought the authorities but also steered Shaw Wallace's operations to greater heights which has seen liquor and beer sales reach new highs despite the perception of damage. |
