August 14, 2000

It On Dadiseth’s trail

Now that Keki Dadiseth has been inducted on to the Indian Hotels board of directors, the speculation that he will be the next head of the Tata group has only intensified. The Tatas will continue to dismiss the speculation as mere gossip, but it certainly originates from what we journalists would classify as an ‘informed source.’ This ‘source’ paints a perfect plan for us. According to him, when Ratan Tata relinquishes charge in two years, Dadiseth would had a bash proving his mettle in the personal care product division of Unilever. Since the division accounts for over half of Unilever, and the MNC also seems headed for a split, there will be no more challenges left for Dadiseth overseas. So what better than to head the one group which every corporate executive can only dream about. In Dadiseth case, the Tata retirement age of 65 would give him a clean five years.

The gameplan

The stand of the Tatas is that a search of the successor is still on and nothing has been decided. Our sources says that the most influential directors at Bombay House, agree that if the group is to survive competition in the future, the task of heading the Tatas cannot be decided on the basis of a surname or family considerations. The question is, what happens to R Gopalkrishnan, who lost the race to Dadiseth at Hindustan Lever — will it be a second time unlucky? It is learnt that one of the cola giants is busy wooing Gopalkrishnan to head their Indian operations and more and he may not even be in the Tatas anymore if, and when Dadiseth makes his entry.

A finger in every pie

It was only four years ago that a key Reliance insider was literally boasting that the group does not believe in diversification. He said that the group had strictly stuck only to synthetic textiles and a wide backward integration right up to setting up a refinery and further back into distribution and exploration. Its little moves in publishing, power and huge investments in real estate were explained away as necessary for business. Reliance’s recent announcements are neither linear nor focussed. In fact its plans to be the biggest player in agriculture, power, IT, media, entertainment, multiplexes, interactive television etc. Or, it could argue that they are linked related to human needs and hence integrated.

SEBI’s new office

If ICICI and IL&FS can move into swanky premises, why not the regulator? According to informed sources, SEBI may be on to an even better corporate address. SEBI is apparently in the race to acquire ‘The new administrative building’ attached to the Maharahstra State Secretariat. The building located in the heart of South Mumbai and sandwiched between the Vidhan Sabha and the Secretariat is probably one of the best offices. SEBI has apparently been offered a huge 70,000 sq ft of space out of a total availability of 1,25,000 sq ft at a very affordable rate. SEBI, says sources, is looking for funds to take up the offer, and is toying with the idea of using the penthouse as a residential apartment for the chairman, creating a guest house as well as flats for senior executive directors.

Losing proposition

SEBI’s decision to opt for the Government Administrative Building will be a big blow to ICICI. SEBI was initially planning to buy ICICI’s building, also in South Mumbai. It had even had a valuation done by HDFC. The building is lying empty for several months waiting for SEBI to sell its existing office. Sources say that the Maharashtra government has offered SEBI a much better price than ICICI, and since even the central government, which SEBI hopes to approach for funds, may prefer the State as a partner. ICICI, which had once claimed that its move to the Bandra-Kurla complex was to save costs and to consolidate all its offices at one location. Instead, it has an obscenely expensive office far from the existing business clusters, another huge empty building lying unused and unable to find a buyer for over a year; and a third, recently-spruced up building in central Mumbai.

Updated weekly.

The author's e-mail address is: suchetadalal@yahoo.com

Other columnists:

Other articles by the columnist Columnist's New Article A pointless apology? Multiple remote controls Learning about technology The market is wrong The Rs 20,000 crore question Y2K = More advances MTNL's net tariffs No wealth creation please Backdoor to advice BPL, Videocon and Sterlite Who gets the SEBI jobs? The Mayor and the RBI Governer A pie in the sky? Speeding up the Special Court The dot - con Game Vanishing company case reappears Those missing VIPs Governer takes over Against what odds? CRB going dot.com? ICICISUCKS.com No The pecking order As The angel gang Deficient disclosures? India changes? Short Memories Bankrupt Maharashtra Another Committee? ALBEM = BADLA The Lloyds example Reliance underpriced? Careless regulator The NAV game Women directors quota Rumblings at SHCIL Yeh Dil Maange More Bombay Dyeing problem A No takers for dollar returns What Federation? Insurance ordeals