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Hinduja family feud: $11 billion empire of truck making, lubricants, banks at stake
New Delhi: A USD 11 billion enterprise empire unfold over 38 international locations that features banks, India’s second-largest truck maker and lubricant making corporations is at the guts of a authorized dispute within the Hinduja family that’s now enjoying out in a London courtroom.
The 4 Hinduja brothers — Srichand, Gopichand, Prakash and Ashok — had in 2014 signed on a doc saying the property held by one brother belong to all, and that every of them will appoint the others as their executors.
However now family patriarch Srichand Hinduja, 84, and his daughter Vinoo need the letter to be declared of “no authorized impact” and the family’s property be separated as per his want of 2016.
Hinduja Group has presence in auto, monetary companies, IT, media, infrastructure, vitality and chemical compounds and healthcare sectors.
Variations among the many brothers cropped up over management of a financial institution the group has in Switzerland.
Gopichand, Prakash and Ashok tried to make use of the 2014 letter to take management of Hinduja Financial institution — an asset that was in Srichand’s sole title, ensuing within the authorized battle, in accordance with courtroom paperwork.
Vinoo and Srichand Hinduja now need the courtroom to agree that the doc has no authorized standing and might be revoked.
Hinduja Financial institution has Shanu Hinduja, the opposite daughter of Srichand, as chairperson, and her son Karam was appointed CEO simply final week.
It was not instantly identified if the 2014 doc, which is at the centre of the dispute, is a casual settlement, a will or the premise of a family structure.
Three Hinduja brothers — Srichand, Gopichand and Prakash — had been within the 1980s accused of taking a fee from Swedish agency Bofors to safe them a defence contract of procuring heavy artillery for India. Nevertheless, the fees in opposition to them couldn’t be confirmed in courtroom and so they had been acquitted.
Ashok Leyland, India’s second largest truck and bus producer, is the flagship agency of the Hinduja Group.
Lubricant maker Gulf Oil Lubricants India Ltd is the opposite listed agency of the group, whereas promoters maintain 14.34 per cent in IndusInd Financial institution Ltd that has a market-cap of over Rs 33,000 crore.
In line with the corporate web site, Hinduja Group was began by Parmanand Deepchand Hinduja with an workplace in Iran. “Service provider Banking and Commerce had been the dual pillars of the Group’s enterprise. The Group remained headquartered in Iran until 1979. It then moved to Europe,” it mentioned.
The group additionally has a BPO, the Bengaluru-headquartered Hinduja international Options (HGS). It had via Gulf Oil Corp Ltd acquired lube and industrial oil maker Houghton Worldwide in December 2012.
In addition to IndusInd Financial institution, the group in 1994 arrange Hinduja Financial institution (Switzerland) Ltd.
Making its foray into the ability sector, Hinduja Nationwide Energy Corp Ltd arrange a 1,040 MW coal-based service provider energy plant at Visakhapatnam in Andhra Pradesh.
The group’s NXTDigital provides cable and DTH companies. Hinduja Realty Ventures (HRVL) is the flagship actual property improvement arm of the group which additionally runs a hospital in Mumbai.
Eldest of the 4 brothers, Srichand is the chairman of the Hinduja Group, Hinduja Financial institution of Switzerland and Hinduja Foundations. He has two daughters — Shanu and Vinoo.
Gopichand, 79, is the co-chairman of Hinduja Group and chairman of Hinduja Automotive Ltd, UK, whereas Prakash, 75, is the chairman of Hinduja Group (Europe).
Gopichand has two sons, Sanjay and Dheeraj and a daughter, Rita. Prakash has two sons, Ajay and Ramkrishan, and a daughter Renuka.
Youngest of the siblings, Ashok, 69, is the chairman of Hinduja Group of Corporations (India). He has two daughters, Ambika and Satya, and one son, Shom.
Ashok Leyland, Gulf Oil and IndusInd Financial institution, the three BSE-listed corporations, do not need any particular person shareholding of the family, as per information supplied by the businesses to the alternate. These corporations have promoter group entities holding stakes.
Hinduja International Options, the BPO service supplier, is the one group firm that has members of the Hinduja family immediately holding shares.
The promoter stake of Hinduja flagship agency Ashok Leyland is cut up into 4 entities — Hinduja Financial institution (Switzerland), Hinduja Automotive, Hinduja Foundries Holding and CitiBank NA — making up almost 52 per cent stake.
No Hinduja family member holds any direct stake in Ashok Leyland, as per the BSE information.
It isn’t identified how a lot every brother holds in these corporations. The brothers have been ranked collectively in wealthy lists.
Among the many third technology of the family Vinoo, Sanjay, Dheeraj, Ajay, Ramkrishan (Remi) and Shom Hinduja are concerned with the group, whereas Shanu, Ritu, Ambika and Satya Hinduja usually are not engaged within the enterprise.
Dheeraj Hinduja, son of Gopichand Hinduja, is the chairman of Ashok Leyland. Dheeraj’s brother Sanjay Hinduja chairs Gulf Oil.
Their cousins Vinoo, Shom, Ambika and Shanoo are listed below the promoter group of Hinduja Options.