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| The Hindu - Aug 30, 2000 |
| Sanmar gives reins to pros |
| Sanmar group brings in professionalism |
| By Our Special Correspondent Chennai, Aug 29. |
| In what is seen as a logical move to align itself with the emerging competitive environment, the Chennai-based Rs.1,100-crore Sanmar group has delinked the ownership from the operational management and reentered the information technology and software area after several years. |
| Broadly, this exercise will see non-family members taking over the managing directorship of four core businesses of the group from September 1. Brothers Mr. N. Sankar and Mr. N. Kumar, promoters of the group, will be the Chairman and Vice-Chairman respectively, of these operations. Mr. Sankar has made it clear at a press conference here today that operational management will be the responsibility of the respective managing directors who will have both functional and financial leeway. |
| Mr. P.S. Jayaraman who has been with the group since 1996 will be the Managing Director of the Rs.446-crore Chemplast Sanmar Ltd., the flagship company which is engaged in the manufacture of PVC and chlorochemicals businesses. He will also be the Managing Director of Cabot Sanmar Ltd., a joint venture producing fumed silica. The Executive Director, Mr. B. Chakrapani, is promoted as the Managing Director of Sanmar Shipping Ltd. Mr. Chakrapani has been with the group since 1994. Similarly, the Executive Director of Sanmar Engineering Corporation Ltd. Mr. M.N. Radhakrishnan, has been elevated to the post of Managing Director. He has been with the group for over two decades. |
| Another long-serving employee, Mr. M.S. Sekhar, will be the new Managing Director of Sanmar Speciality Chemicals Ltd. Currently, he is the Executive Director of Speciality Chemicals and Footwear and Property Development. Mr. B. Natraj, who joined the group way back in 1991 as Executive Director (Corporate), is re-designated as Managing Director (Corporate). |
| Far from a mere re-designation exercise, it is seen as a serious attempt by the promoters to bring about greater transparency in the functioning of the group with attendant responsibility. According to Mr. Sankar, the operation heads will have complete freedom to draw up their own business plans. Of course, their plans will fit into the overall strategies of the group. |
| A Corporate Management Board (CMB) is already functioning and the non-promoter managing directors will form an important constituent of it. The CMB, it is stated, will be the common link connecting the varied outfits of the group. If Mr. Sankar were to go by; the move is under way to expand CMB with the induction of some younger members. The group is also putting in position a Corporate Executive Committee (CEC). The operational heads of all group companies will meet every week under the aegis of CEC to resolve common issues related to management. |
| Both Mr. Kumar and Mr. Sankar are of the view that the current endeavours will lead to institutionalisation of management practices and result in spotting growth opportunities. “There is a tendency to centralise decision-making around me and Kumar as long as we are involved in the operations, no matter how much we resist it. The current step is, therefore, to clearly distance ourselves with operational management and put the authority and responsibility in the hands of managing directors,” Mr. Sankar rationalised. |
| For the present, Mr. Kumar will guide the group’s re-entry into the IT field. It may be recalled that the group had quit the now CBSI (India) Ltd. after selling its stake to the joint venture partner. According to Mr. Kumar, the IT focus of the group will be through two companies. Indchem Software Technology Ltd. will primarily be involved in offshore development of products related to telecom and Internet fields. Indchem Dot Com Ltd., a joint venture with Silk Route of Singapore, will be some sort of an incubator. Already, it has funded six B2B and Heritage portals. |
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