Welspun Syntex Limited , the yarn spinning business established in 1983, flagship company under the Welspun umbrella, the $3-billion textile-to-steel pipes conglomerate will be now managed by cofounder Rajesh Mandawewalaâ€™s elder son Abhishek. The decision by Welspun Group to carve out the yarn spinning business is a step to ensure separation of ownership and management, while simultaneously planning a smooth succession of the business to the next generation.
Mandawewala, the group managing director, is in the process of purchasing partner and chairman BK Goenka's stake in Welspun Syntex.
This is an effort to create a separate roadmap for Abhishek, the spokesperson told ET. It is a proactive action to realize that young people are coming with their own ambitions. By creating new structure the young generation can take the business to a new level and at the same time not be in conflict with any of the existing processes. The three-decade old group hired consultant McKinsey earlier this year to craft `Vision 2020', a programme aimed at building a new organisational DNA for the group where promoters will step away from operational responsibilities to take up a more strategic and nurturing role. To keep up with the spirit of the decision, the promoters do not want Abhishek Mandawewala to take up senior managerial role within the group.
Chairman BK Goenka and MD Rajesh Mandawewala founded the $3-billion conglomerate from a small town in Maharashtra in 1985. Today, the group gets most of its revenues from selling pipes to global oil companies, and towels and bed sheets in both local and overseas markets. Welspun Syntex posted a 835 crore of revenue last fiscal year. Goenka has already stepped down from Syntex's Board and Abhishek Mandawewala took over as a whole time director in August.
The company spokesperson declined to divulge financial terms of the transaction. Promoters held just over 70% of Welspun Syntex stake at the end of September.
The younger generation, too wants to prove competence before taking up a senior role. Many are leaving family businesses to carve own destinies. In the new role, 28-year-old Ab hishek will be driving strategic initiatives and automation in various processes, and financial tie-ups for the company, according to a filing with the ministry of corporate affairs.
Welspun Syntex has also started the process of changing its name to AYM Syntex. The arrangement leads to no change in the current promoter shareholding pattern of the group.
Welspun Syntex Limited today is amongst the largest manufacturers and exporters of Polyester Texturised Filament Yarn, Nylon Filament Yarn from India. With plants located at Silvassa and Palghar (Thane), India. WSL is well equipped to meet the domestic as well as international demand. It has marketing offices located at Surat and Mumbai that facilitate big business ventures.
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