Telltale signs of restructuring in Aditya Birla group: CNBC-TV18
Our Corporate Bureau
18 August 2006
Down in the rankings and two key officials gone, CNBC TV18 shares with domain-b its report on the telltale signs of restructuring in the Aditya Birla group's financial services business. In its report, Nani Jhaveri, CEO of Birla Sunlife Insurance resigned on Thursday, a couple of months before he was to retire. Birla group's director of financial services, S K Mitra is slated to take over.
A couple of months ago, another Birla financial services company lost its CEO when S V Prasad resigned and Gary Comerford, one of Sunlife Financial's vice presidents took charge in his place.
So now a Birla representative heads the 74:26 insurance JV partnership with Sunlife and a Sunlife representative heads Birla group's 50:50 mutual fund JV with Sunlife Financials.
Both these subsidiaries are believed to be scouting for new CEOs, but not only has Birla lost two CEOs, it's also lost its ranking. In 2002, Birla was the fourth-largest mutual fund in India, now it ranks sixth. Likewise, in 2004, Birla Insurance was the third-largest private sector insurance player and now it's seventh!
CNBC-TV18 has learnt that this performance and the resignations may have prompted a fresh round of internal restructuring of the two businesses. Responsibilities and work are being re-allocated and the hunt is on for two new CEOs.