There’ll be no division of family business: GP Hinduja

Transnational conglomerate Hinduja Group, where the third generation of the family has taken charge of key businesses, will continue to stay united as there are no differences necessitating any division, chairman GP Hinduja (GP) toldFEin an interaction.

Speaking at the family’s residence at Carlton House Terrace in London, GP said the family has a simple mantra for entering a particular sector at any point of time. “There is no restriction on the sector, provided it is profit making, has a good future, has a good team, and has good management,” he said.

The comments assume significance as there have been reports that after the demise of erstwhile chairman SP Hinduja in May, a dispute between SP’s daughter and brothers may see separation of businesses and assets.

The Hindujas have dismissed such speculation and declined to comment any further.

GP’s younger brother Prakash Hinduja (PP) gave an example of how individual initiative is welcome in the family. The son of their youngest brother, Ashok Hinduja, wanted to get into the renewable energy sector and the family fully supported him, PP said.

“I will add value to him in giving him certain ideas, certain thoughts from my intuition, which hewill immediately take, think about, and then put it with the professionals, and then implement it,” he said. “The whole goal of the family is with each business concept… the thought process comes from all the three brothers — three souls into one goal.”

As part of the next stage of growth, the group will focus on mobility, where it is present through Ashok Leyland; renewable energy; lubricants and specialty chemicals; technology; and BFSI. Of these, BFSI will emerge as the biggest sector for the group, with huge scope for value creation.

The group aims for value creation of $35-40 billion from the BFSI business by 2030. According to Ashok Hinduja, who oversees the BFSI businesses, the group is in the process of raising its stake from 15% to 26% in IndusInd Bank, with the Reserve Bank of India giving its approval. “We will get about over a billion dollars to go into phases. Our first capital raise, which was the treasury shares, will be completed by mid-November,” he said. However, AP ruled out any bids for IDBI Bank saying it will not bring any value.

Asked whether the group is exasperated over the delays in the finalisation of the Reliance Capital deal, where it has emerged as the preferred bidder, Ashok Hinduja said investors have understood that there will be delays in anything which has to go through the IBC (Insolvency and Bankruptcy Code) route as there is bound to be litigation. He expects that the Supreme Court will give its final decision in the case by November, which will bring closure to the matter.

The Hinduja Group is bullish on the Indian economy and will continue to invest in the sectors where it is present. “The Indian economy has potentiality and a great future. You must have seen, the World Bank has already given a growth from 6.1 to 6.3%,” said GP. Hailing Prime Minister Narendra Modi’s “great vision”, he said the only area where the government needs to speed up is implementation. “I was the first to say in 2019 that India will be the third largest economy in the world and it’s going on that track. I am not an economist, I am not even a graduate, but I have experiences of my life. I get instincts and I have seen many downfalls in the world,” GP said.

(The writer was in London at the invitation of Hinduja Group)