The Hindu Business Line : Birla Corp focused on growth, says Lodha

Mr R.S. Lodha, Co-chairman, Birla Corporation, coming out after the AGM in Kolkata on Wednesday. The meeting was held in the backdrop of the legal battle between Mr Lodha and the Birla family for control of the M.P. Birla group, of which Birla Corporation is the flagship company. - Parth Sanyal

Kolkata , Sept. 15

FOR the first time since Priyamvada Birla's will was read out to the Birla clan two months ago, Mr Rajendra Singh Lodha, Co-Chairman of Birla Corporation, today sent out a strong signal to his opponents about his feelings and intentions.

In his address to the shareholders of Birla Corporation Ltd, the flagship company of the MP Birla group, at a six-hour-long AGM, Mr Lodha assured everyone that the concept of "continuity" would be followed in the company's operations and that everyone would keep on trying to ensure that the company "grows and expands."

Referring to the recent developments revolving around the ownership of the company, he urged the shareholders not to be "swayed by the choppy waters."

He said that the MP Birla Eye Clinic would set up an eye hospital jointly with Arvind Eye Care as wished by "badi maa" (the late Priyamvada Birla), in which group companies and foundations would actively participate.

Mr Lodha did not make any comment either on the Birlas or on the ongoing legal battle but he did not miss the opportunity to take a dig at the family.

"Some people claimed that they were not aware of what was coming, but you, the shareholders, know better and should not buy their theory."

He also took the opportunity to clarify that not a penny of his legal expenses (incurred in the battle with the Birlas) had been borne by Birla Corporation and that the AGM was being conducted in compliance with the orders passed by the Company Law Board (CLB).

At the AGM, eight resolutions were put to vote. It included the three mentioned by CLB pertaining to reappointment of Mr Lodha, Mr Pracheta Majumdar and Mr Vikram Swarup as Directors.

The other five focused on reappointment of Ms Nandini Nopany (Mr K.K. Birla's daughter) and Mr K.C. Mittal as Directors, reappointment of the auditor, on accounts and on dividend. Later in the evening, the company announced that all the resolutions, save the three picked by CLB, had been passed with 99.99 per cent majority.

The results of polling on the remaining three resolutions will be announced after the final order is passed by CLB.

Speaking about the company, Mr Lodha said that the management had decided to shut down Birla Synthetics, which had incurred an accumulated loss of Rs 23.5 crore over the last five years.

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