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Business problems, poor health may have driven Piramal to attempt suicide

Priya Ganapati in Bombay

A business empire with revival efforts coming to naught and poor health could be the reasons that drove Dr Mohanlal Piramal, head of the Piramal Group of Industries and uncle of well-known businessmen Dilip (Blowplast) and Ajay Piramal (Nicholas Piramal), to attempt suicide.

The police said Dr Piramal tried to end his life on Thursday afternoon by shooting himself in the head at his central Bombay home.

The 69-year-old industrialist shot himself at around 3 pm and was rushed to the Breach Candy hospital where his condition is stated to be serious. He is still unconscious.

The police said a note found in his room stated he wanted to end his life without giving any reason. However, the police suspect business problems to be the reason for the suicide attempt.

Dr Piramal is chairman and managing director of the Piramal Spinning and Weaving Mills Limited. He controls yet another textile mill, Maheshwari Mills Limited. He is also the promoter of a non-banking financial company, Piramal Financial Services Limited.

Piramal Spinning operates three units, two of which are located in Maharashtra and one in Gujarat. The Gujarat unit at Surat, originally called Niranjan Mills, was merged with Piramal Spinning a few years ago.

In 1997, the company's net profit fell steeply by 80 per cent. The decline in performance was considered to be indicative of the sluggish market conditions faced by composite textile mills.

Intense competition from the unorganised powerloom sector too took its toll.

Dr Piramal then tried to evolve an expansion-cum-modernisation scheme worth Rs 280 million to put the mills back on track.

"About two years ago, he planned to arrange a loan from some foreign bank, based either in Hong Kong or Singapore. He was hopeful of getting the loan because he was trying hard to salvage his mills. But somehow, the loan did not come through. He was devastated," Dr B N Bandyopadhyay, former director, Bombay Textile Research Association, recalled. Dr Piramal was chairman of the governing council, BTRA, before he stepped down in 1998.

As of March 2000, Piramal Spinning showed a negative net worth of Rs 172.9 million.

Dr Bandyopadhyay's relationship with Dr Piramal dates back to 1995, when the former was selected to head BTRA. Since then, the duo have worked closely.

News of Dr Piramal's suicide attempt came as a shock to him. "I have had a long association with him. He is a gem of a person. But his business deals were not going very well. He has been worried and not keeping good health. His mills are not doing well and some even had to be closed down," a stunned Dr Bandyopadhyay said.

Dr Piramal worked closely with the government on issues that matter to the textile industry. "Various ministers consult him on issues relating to the textile industry. Many times, when I visit his home, I find him in discussion with them. He was also chairman of the Indian Cotton Mills Federation," said Dr Bandyopadhyay.

Apparently, poor health dogged the businessman in recent years. He recently underwent bypass surgery. "When I met him a few months ago, he seemed quite ill. He has been having heart problems," Dr Bandyopadhyay revealed.

Dr Piramal was the original promoter of the company now known as Jindal Iron and Steel Co Limited. Started as the Piramal Steel Limited in 1972, the company turned sick in the late 1970s and was taken over by the Jindals in 1982. Over the years, JISCO has turned into a healthy, profit-making company.

In 1974, Dr Piramal incorporated Piramal Rasayan which was taken over in 1985 and re-named Amal Rasayan Limited. The non-banking financial company, Piramal Financial Services Limited, ran into trouble with the Reserve Bank of India with the court finally appointing a provisional liquidator last May.

Dr Piramal has three daughters. His wife, who is currently away in the US, has been informed about the incident.

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