Mumbai, Oct 25: Alcan Aluminium of Canada is likely to nominate an expatriate chief executive officer at Indal's board meeting in Mumbai on Monday. The new CEO is also expected to take over as the new chairman of the company, ending weeks of speculation that one of the senior executives of Indal will be elevated to the position of CEO, while an expatriate will become the new chairman. As part of a broader plan to integrate Indal into Alcan's global game plan, three more expatriates, besides the new CEO, will be drafted onto the board on Monday. This will take the total number of Alcan nominees on the Indal board to seven, and the number of expatriates to five.Except the CEO, the other expatriates will grace the board in a non-executive capacity, like the three other Alcan nominees at present - Suresh Thadani, Brian Sturgell and PK Pal. Non-executive chairman Susim Mukul Datta and vice and chairman & managing director Tapan Mitra will step down from the board on Monday as expected. The board will also adoptthe second quarter results.The joining of the four new expatriates is believed to be only the first round in the changes that Alcan has planned. In a second round of reshuffling of portfolios that will be announced within the next couple of months, some members of the executive management committee will be drafted on to the board.
The management committee, which looks after the day-to-day functioning of Indal, comprises the division heads and the company secretary. All have the designation of either president or vice-president. However, the names of the four new expatriates could not be learnt. Senior Indal executives remain tightlipped on the board level changes that will be formally announced on Monday. "Alcan will now have a greater say in the functioning of the company," was all that they were willing to say.
Speculation is rife even among Indal senior executives that some of the non-executive directors (six at present) on the board may step down to make room for management committee members. This,however, could not be confirmed.The non-executive directors on the Indal board include NJ Jhaveri, Deepak Parekh and AL Mudaliar, among others.
The expansion of the Indal board that is being planned some time later to include members of the management committee will be be necessitated as, after the first round of expansion, there will be only two wholetime directors left on the board - the expatriate CEO and NK Choudhary, the chief operating officer.
Partha S Datta was the company's chief financial officer (CFO) till a few months back, but since his resignation, the new CFO Indrajeet Banerjee has not been drafted onto the board yet. Alcan has only recently upped its stake in Indal to 54.6 per cent through an open offer in June.
Its perceived indifference towards Indal had prompted Sterlite Industries to mount a takeover bid for Indal, which Alcan successfully thwarted.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.