According to the industry insiders, Welspun Group has decided to hive off its yarn-spinning business into a separate entity called Welspun Syntex, which will be managed by cofounder Rajesh Mandawewala's elder son Abhishek. Mandawewala is also said to be looking at acquiring partner and Shairman BK Goenka's stake in Welspun Syntex.
According to the company sources, the process is a part of the company’s efforts to ensure separation of ownership and management, while simultaneously planning a smooth succession of the business to the next generation. The three-decade old group brought consultant McKinsey on board earlier this year to craft `Vision 2020', a programme aimed at building a new organisational structure for the group where promoters will step away from operational responsibilities to take up a more strategic role.
Chairman BK Goenka and MD Rajesh Mandawewala founded the $3-billion conglomerate from a small town in Maharashtra in 1985. Today, the group gets most of its revenues from selling pipes to global oil companies, and towels and bed sheets in both local and overseas markets. Welspun Syntex posted Rs 835 crores of revenue last fiscal year.
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