In a regulatory submitting, Bombay Dyeing mentioned Jeh will not be renewing his contract as MD of the firm that expired on March 31. The 47-yr-old Jeh, the 2nd son of team chairman Nusli Wadia, took about as the MD of Bombay Dyeing on April one, 2011.
Jeh has relinquished his role as MD at Bombay Dyeing and GoAir while continuing to be its promoter, sources mentioned. It was not immediately distinct if he will be inducted in a non-government director’s capacity at Bombay Dyeing and GoAir. More mature brother Ness as very well as the senior Wadia are on the board of the two companies.
The two exit moves show that the Wadia loved ones wishes to different possession from administration. Sources mentioned the restructuring is aimed at “professionalising the management” in Wadia Group running entities, with the loved ones continuing to hold shareholder rights and directorships. The team wishes to provide in experienced administration to operate their companies, mentioned Shriram Subramanian, founder and MD of proxy advisory agency InGovern Exploration.
The Wadia Group, mentioned the sources, desired to stick to the possession and administration separation model as that of Britannia, which has been a results story. Britannia, 1 of the premier bakery and dairy goods players, has a market cap of Rs 87,156 crore as in contrast to the Rs 10,818-crore combination market cap of other mentioned Wadia companies — Bombay Burmah Trading, Bombay Dyeing and Nationwide Peroxide.
The practice of separating possession and administration has been applied in Infosys wherever its founders still left the functioning of the IT solutions firm to certified experienced supervisors, while retaining the voting rights.
The day-to-day administration at Bombay Dyeing will now be looked soon after by Suresh Khurana, who oversees the polyester business, and Hitesh Vora, the CFO, under the supervision of non-independent director Minnie Bodhanwala.