The conglomerate Murugappa Group's plan to settle the business among its three families has hit a roadblock as talks slowed over disputes on key issues.
According to media reports, the bone of contention has been the group's Tube Investments in India (TII) and the major rise in value of its few firms.
Tube Investments of India (TII), which took over the CG power saw a turnaround in its fortunes. The share price of the latter has registered a 15-fold rise since the takeover.
The rise in share prices including its firms such as Cholamandalam Investment, Wendt India, and Shanti Gears has also created fissures among the several factions of the extended family.
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CG Power and Industrial Solutions Ltd registered a 21 per cent rise in its standalone profit after tax of Rs 232.13 crore for the first quarter of FY25, as per reports.
Cholamandalam Investment and Finance company registered a 29.7 per cent growth in profit after tax at Rs 942 crore for three-month period ending June 2024 compared to Rs 726 crore in the corresponding quarter of last year.
Its total income during the quarter under review grew by 40.9 per cent to Rs 5,828 crore from Rs 4,134 crore registered in the corresponding quarter of last year.
The Murugappa Group, which recently generated a revenue of $9 billion in FY23, agreed to settle the disputes earlier last year after the demise of MV Murugappan. The settlement for the conglomerate among its family has been going on for the past two years.
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The group hoped to settle the disputes between the family branch of the late MV Murugappan which includes her two daughters and the rest of the family.
M V Murugappan served as the executive chairman of the family business for over two decades until he passed away in 2017. He was survived by his two daughters, Valli and Vellachi, and was the only elder on the board with no sons.
The dispute arose over the post of the directorship in Ambadi Investment Ltd (AIL). It is the holding company of the Murugappa Group.
Murugappa Group is 124 years old and owns 30 companies manufacturing fertilisers, abrasives, bicycles, polymers besides offering, financial services and engineering.
Barclays Private Clients Hurun India ranked Murugappa Group in 2024 as the 10th most valuable family business.
