Murugappa Group Gets into Family Rift

Members of the Rs 37,000 crore Murugappa group were surprised to read in some financial dailies about the rift in the family over board membership in holding company Ambadi Investments, but Executive Chairman M.M. Murugappan has assured that the matter will be soon settled amicably.

Firing the first salvo was the US-based Valli Arunachalam, the daughter of late M.V. Murugappan, demanding a board member for her or her sister in Ambadi Investments.

Arunachalam had alleged the group promoters have gender bias against women getting into family business and hence she or her sister were denied a board berth in Ambadi Investments after their father's death in 2017.

Demanding a board berth for her or her sister, she also said if the demand is not met, then the other branches of the family should pay a fair market value for about eight per cent stake held in Ambadi Investments.

With the family rift hitting the news pages, Murugappan, Executive Chairman of the group, sent out a mail to all the senior officials in the group pointing out the clear demarcation of ownership and management of the companies.

He also assured senior officials that the family rift will be amicably settled soon and it will not have any impact on the companies.