Wadias plan unified group structure

The Rs 3,000 crore-plus Nusli Wadia group is set to see a change in its organisational structure.

Taking a cue from the Tata and the AV Birla groups, the Wadias are now looking at a unified group structure for all their companies.

The group is formalising plans for a common group office, comprising Wadia and his sons, and some senior executives of group companies, to oversee group-wide issues like restructuring, operational activities and new business opportunities.

Group chairman Nusli Wadia's elder son, Ness, who is currently deputy managing director of Bombay Dyeing, told Business Standard, "We are initiating an exercise of a unified Wadia group structure for all the companies (Bombay Dyeing, Britannia, National Peroxide and Bombay Burmah)."

"We are looking at different models for the group structure," Wadia added.

The group has already embarked on a major restructuring exercise and is looking at entering new business and exiting unviable ones.

It has quietly entered new businesses like information technology, clinical research and entertainment.

The group is also exploring the possibility of restructuring the manufacturing operations of different group companies.

This includes a feasibility study on whether Bombay Dyeing's manufacturing facilities should be shifted out of Mumbai.

Both the Wadia scions -- Ness and Jeh -- are understood to be playing a critical role now in group activities.

Jeh, the younger Wadia, is deputy managing director of Bombay Burmah Trading, the diversified company, and has been spearheading the group's foray into clinical research, information technology and entertainment.

The corporate headquarters of all group companies will move out of Neville House in south Mumbai to Worli.

"Around 250 executives from different companies will be moving to Worli," Ness Wadia said.

The group is planning to lease out the landmark property, as part of its consolidation plans. It has been selling its real estate assets for quite some time now.

The Wadia group has a presence in its traditional businesses of petrochemicals, foods, dairy, textiles, real estate, plantations and light engineering.

The Rs 1,500-crore (Rs 15 billion) Britannia Industries and the Rs 1,000-crore (Rs 10 billion) Bombay Dyeing are the two largest companies in the group.

Petrochemicals and textiles company Bombay Dyeing has lost a lot of sheen over the past 10 years and has been outpaced by Reliance Industries.

It is now looking at depending largely on outsourcing for its textiles operations. But Britannia, in which Wadia has an equal stake with Groupe Danone of France, is the largest player in the biscuits business.