Murugappa heir close to unseating a bias

MUMBAI: Valli Arunachalam could soon be breaking the glass ceiling at the century-old Murugappa Group. Shareholders of the closely held Ambadi Investments Ltd (AIL), holding company of the $5-billion group, will meet later this month to consider her appointment as the first woman member of the board. Arunachalam has been battling for the right to be recognised as her father's successor on the board."Ambadi Investments is holding its annual general meeting (AGM) on September 21 and considering Valli Arunachalam's candidature to accommodate her on the board is one of the agenda items," said one of two people aware of the development. "The company had sought certain documents from her in this regard a few weeks ago, which were also furnished by her."Arunachalam, a nuclear engineer by training, is the eldest daughter of former executive chairman MV Murugappan, who died in 2017. Arunachalam says she was denied a board position in Ambadi Investments, despite being his heir. Arunachalam, 59, her sister and their mother hold an 8.15% stake in AIL. "I intend to carry out my duties as a director to the fullest extent," she told ET in an email. "I am a senior technocrat in my family and have tremendous experience in the business. I propose to leverage all of that experience and contribute to the growth of the company, and the business."She confirmed that her appointment as director is on the agenda. "I am glad the family seems to be seeing the light of day, and the board (which consists mainly of family members) has placed my appointment on the AGM agenda," Arunachalam said. "Given the family controls the majority stake in the company, I would like to believe that it is a foregone conclusion that I will be appointed as a director at the AGM."ET was first to report the matter on January 4.78071296'A significant shareholder'Under the Hindu Succession (Amendment) Act of 2005, women could become the karta - or head - of the family and daughters became coparceners, allowing them to inherit as much as sons. Arunachalam is karta of the MVM Hindu Undivided Family (HUF) branch, which holds the stake in Ambadi Investments."Our point has been simple - given our family has limited involvement in the businesses of the operating companies after my father passed away, we should be settled and the family can absorb our Ambadi stake. This is also consistent with my father's wishes," said New York-based Arunachalam. "My father, during his lifetime, represented our branch of the family on the AIL board, and it would have been in the interest of fairness that we had a board seat from when he passed away, as we are a significant shareholder and promoter." Arunachalam's mother and sister support her bid for board representation.Founded in 1900, the Murugappa Group currently controls more than two dozen companies, including nine listed ones - Coromandel International, EID Parry (India), Shanthi Gears, Carborundum Universal, Tube Investments of India, Wendt (India), Cholamandalam Financial Holdings and Cholamandalam Investment & Finance Company among others.MV Subbiah, the patriarch who mentored a generation of family members to leadership roles, and MA Alagappan, the former executive chairman of the group, didn't respond to queries.

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