Succession Conundrum at Sri Balaji Assemblies and Plastics Pvt. Ltd.
D. Parthasarathy and D. Lakshmi Narasimhan had reasons to rejoice. They had quit their jobs and had taken the risk by joining the family business set up by the twin brothers D. Sridhar and D. Sunder. Over the years the sales turnover had increased from ₹1 lakh in 1988 to ₹6,500 lakh in 2009 and to ₹13,000 lakh in 2012. When the entire company was gearing itself to celebrate the silver jubilee year of the company Sri Balaji Assemblies and Plastics Pvt. Ltd. (SBAP), the siblings were nostalgic. They knew that the journey of the company in the last 25 years had been excellent and momentous. The company did not face any serious family disputes due to practicing a simple principle, “Not to mix business with family and family with business”. Nevertheless, they were also anxious to equip SBAP to face the next phase of quantum growth. D.Parthasarathy, the Managing Director, was equally elated but was also preoccupied with the sheets lying on his desk reflecting the growth of the company in the past 25 years.
SBAP Family: Overview
J. Desikan, father of the Directors of SBAP was a government official. S.R. Sheshadri maternal uncle of the brothers, worked as a Deputy Director with the Meteorological Department of Tamil Nadu. J.Desikan had seven sons while S.R.Sheshadri had two sons (Exhibit I). His elder son S Parthasarathy (SP) was working for Kirlosakar Brothers. S Parthasarathy (SP) was the one who sowed the idea of business in the family. In 1972, a small plastic hand molding unit under the name Sri Venkateshwara Plastics was started by S.Parthasarathy and managed by his father S.R.Sheshadri. The firm manufactured a plastic container and a lid with a stick attached (Exhibit II) and supplied these containers to Aravind Laboratories – manufacturers of Eyetex brand Kumkum. In 1973, Sheshadri converted the firm into a partnership firm by inducting his brother S.R .Ranganathan...................