‘I’ll do all to keep my family politics and Raymond separate’
MUMBAI: Gautam Singhania, chairman and managing director of Raymond Ltd, has been in the news for his protracted legal battle with father Vijaypat Singhania over the family home JK House. In an interview, he said his only interest is to protect shareholders of Raymond that owns JK House. Singhania also lays out Raymond’s plans in the packaged consumer goods segment. Edited excerpts:
You had come out and advised that shareholders should vote against the proposal to sell JK House flats (to erstwhile tenants). When the agreement was first signed in 2007, wasn’t it put to shareholder approval at that time?
No, it was an understanding to reach an agreement. It was an understanding that at this time, an agreement will be reached. So the whole thing in the media—I can’t comment too much—is a completely wrong factual representation.
So what are the facts?
When there was a specific performance for a so-called agreement, I was obliged to take it to the audit committee. The significant thing that happened between 2007 and 2017 is the new Companies’ Act in 2013 which has a related-party transaction clause. Under this clause, to maintain the highest levels of governance, I am obliged to take it to the committee. I have not attended the audit committee meetings. I did not attend because I did not want to influence anybody. They have proposed it to the board. Then the board said—I did not attend the meeting for this specific agenda—take it to the shareholders. It is on the record. I have put it in a statement. Whilst I will not vote as a principal shareholder and an interested party in the right spirit of governance, but if I were to vote, I would vote against the resolution.
But now that the high court has asked the firm and Vijaypat Singhania to reach some kind of a deal, what deal can be done once shareholders have voted against this?
If the high court has asked to do something, I will do what the court says. But I don’t know what the answer is. And I can’t even comment, the matter is sub judice.
The elder Mr Singhania had said that you’re running the company like a fiefdom.
That’s his view. I don’t think my share price would have doubled in the last one year if that’s what the perception was... Why would quality investors invest in a company if they thought it was being run in the way you so described just now?
There have been other litigations in your family.. What are key takeaways for someone running a business like yours?
I wear two hats. One is a family hat, and one is chairman and MD of Raymond. I cannot mix them. In my role as managing director, I have 35,000 people who work for me. I have tens of lakhs of people indirectly whose future is dependent on the Raymond group. As a son to my father, as a husband to my wife, as a parent to my kids, I have a different responsibility. I have to keep Raymond firewalled from my internal family politics. I will do everything to keep them separate.