K K Modi, head of the over Rs 4,000 crore diversified Modi Enterprises, today said his succession plan provides for selling the business empire if his three children, including IPL's suspendend chairman Lalit Modi, can't stick together.
This is a condition laid by the 73-year-old industrialist, whose businesses ranging from tobacoo to entertainment are run by a Trust currently managed by him.
"There is a succession plan in place and all my three children will have an equal opportunity," Modi said when asked to comment on reports whether Lalit was the chosen successor of the diversified group.
Charu, the younger sister of Lalit, who is engaged in a bitter battle with the Board of Control for Cricket in India after his suspension as IPL chairman on charges of financial misdeeds and impropriety, is married in the Bhartia family and younger brother Samir looks after the consumer goods business Modicare.
Modi senior said that at present the ownership of the family business is in the name of KK Modi Family Trust, of which he is the Managing Trustee.
"After me, they (his children) will have to appoint someone unanimously to head the business for three years and the same process will follow afterwards," Modi said.
In case his children are unable to unanimously appoint someone as the Managing Trustee of the Trust, then the entire business of the Modi Group will be sold off.
"The money they get after selling off the entire businesses will then be shared equally among them," Modi said.
Modi said all his children are now playing an advisory role in the various businesses of the group, which are being run by professionals.
The Modi group has interests in businesses ranging from agro to chemicals, entertainment to education, consumer goods and travel.
The most high profile is the group's cigarettes venture, Godfrey Philips India in partnership with Philip Morris, USA. It also has partnered Fashion Television, the only international TV channel dedicated to fashion 24 hours a day.
The Modi group also has interest in education through the Modi Apollo International Institute for higher education. In the past, the group has had tie-ups with Gernamy's AG for tyre business.