Divided we stand

Abitter battle is under way among the four brothers who run the Hyderabad-based Sanghi Group of Companies. The differences have reached a point where the brothers (the elder two are pitted against the younger two) have lodged police complaints against each other, alleging physical assaults. The elder brothers, Anand Sanghi and Sudhir Sanghi, are ready for a split and want a “legitimate share of 25 per cent each in the group’s assets”. The younger siblings are apparently against this and blame the elder two for business losses.

A lot is at stake. The group, which has a turnover of around Rs 2,000 crore, has two listed entities, Sanghi Industries and Sanghi Polyesters, besides a few closelyheld businesses ranging from media (the group publishes a Telugu newspaper, Vartha) and spinning to zip fasteners. For the quarter ended June 2008, Sanghi Polyesters posted a net loss of Rs 6 crore on sales of Rs 100 crore, and Sanghi Industries registered a net profit of Rs 7.3 crore on sales of Rs 224 crore. The group also has a land bank of around 2,600 acres at Sanghi Nagar, at the outskirts of Hyderabad.

The younger brothers, Girish and Ravi, have denied allegations of assault and are hopeful of settling the differences soon. “What essentially needs to be done now is a cash settlement for their (the two elder brothers’) exit . The figures have also been worked out and there is a broad agreement on this and hopefully it will be resolved soon,” says Ravi.

The brothers have also taken their battle to the Company Law Board and a hearing is likely this month. The CLB, apparently, is also in favour of an early resolution of the dispute. The stakeholders in at least the two listed companies would only be hoping that this gets over soon.

A lot at stake

• A group that reportedly has an asset base of $2 billion
• Two listed entities and a few closely-held firms
• Presence across sectors
• A land bank of around 2,600 acres at Sanghi Nagar