The Finolex Group has been caught in a controversy over the control of the Rs 15,000-crore firm after two relatives accused each other of trying to seize the reins of Finolex Cables Ltd (FCL), India’s largest and leading manufacturer of electrical and telecommunication cables, said media reports.
The family dispute has arisen between Prakash Chhabria and his cousin Deepak Chhabria.
Prakash is the biggest shareholder of Orbit Electricals, the promoter entity of Finolex Cables, while Deepak is FCL’s executive chairman. Prakash controls nearly 78 percent of Orbit Electricals while Deepak Chhabria has 8 percent stake in the company, according to a report in ET.
The report said that Prakash had allegedly submitted fraudulent documents to the board of Orbit Electricals in an effort to obtain control of the company, FCL alleged in a letter dated 26 March. Orbit Electricals, however, denied all the allegations in a stock exchange filing on Wednesday, the report said.
Finolex Cables, which also produces lighting products, electrical accessories, switchgear, fans and water heaters, set up four modern state-of-the-art manufacturing plants in Pimpri (Pune), Urse (Pune), Goa and Roorkee (Uttarakhand), according to company’s portal.
The company, which was set up in 1958 in Pune, said it started its operation with the manufacture of PVC insulated electrical cables for the automobile industry.
In November last year, the company had said that it aimed at setting up 50 brand retail stores called ‘Finolex House’ by 2019.
The first exclusive store was formally inaugurated by the company’s executive chairman, Deepak, said a PTI report.
Finolex House would serve as a one-stop shop for consumers offering end-to-end electrical solutions.
“Our goal is to provide complete electrical solutions to our customers across India. We are happy to launch the first Finolex House in Chennai,” Chhabria said after formally inaugurating the store.―First Post