There is something cooking at the Wadia group.
After stepping down as MD from the family controlled Go Airlines (rebranded as Go First) and Bombay Dyeing in March 2021, Jehangir Wadia (48, younger son of Nusli Wadia) has now stepped down from the boards of Britannia Industries and Bombay Burmah Trading Corporation (BBTC).
There is no clarity on the reason for his exits. Possible attributed reasons are –
- His differences with father Nusli Wadia. In March, Go Air in its DRHP disclosed dispute with Jeh Wadia over ownership of brand name and other similar assets and indicated that it’s exploring legal action against Jeh. Jeh held those assets privately. Besides, SEBI has kept the approval for Go Air’s IPO in abeyance and is expected to take a decision by September 2021 end. Go Air continues to be a thorn for the family and has sucked in large amounts of money over the years. The family surely is wanting to derisk themselves from this business.
- Family’s intention to bring professional management to manage its varied businesses – especially given the success of professional management model in Britannia Industries that continues to be the most successful entity in the group and has created significant wealth over the years. It’s pertinent to mention here that Jeh’s elder brother Ness currently continues to be the MD of BBTC.
Whatever the reasons, this is something that needs to be watched closely. Hopefully Wadia family is matured and experienced enough to handle these things !