Thaindian News

Ahmedabad, July 10 (IANS) When Punit Lalbhai, the elder son of Arvind Mills Ltd chairman and managing director Sanjay Lalbhai, is inducted into the company September 1, he will be just another employee rather than being on the company board. Lalbhai junior, with a Masters degree in Forestry and Environmental Studies from Yale University, will join as “chief manager projects”. His monthly compensation package - comprising a basic salary of Rs.35,000 and perks of up to Rs.65,000 - will be equal to that of other employees in the same grade with similar qualifications and experience.

Besides, according to a special resolution recommending his appointment, the 26-year-old will have to provide an “undertaking that he will be in the exclusive employment of the company and will not hold a place of profit in any other company”.

The special resolution will come up for ratification at the company’s annual general meeting July 31. Arvind Mills is the flagship company of the Rs.20-billion ($500-million) Lalbhai group.

As chief manager of projects, Punit Lalbhai’s key responsibility will be to carve out new directions by “identifying the synergy between the company’s current and future businesses”, the resolution says.

He will also oversee project execution and formulate the company’s strategy in emerging fields. “He will be responsible for constantly tracking the new events unfolding in these fields and constantly update these emerging knowledge-based businesses,” the recommendation says.

The company is executing expansion plans which include setting up greenfield projects.

It will also be making a strategic entry into areas such as organic cotton farming, bio-fuels and carbon credits. Organic cotton cultivation will be a backward integration for Arvind.

Sanjay Lalbhai joined Arvind in 1975 when he was 21, and became its managing director in 1980. He was named chairman last year following the death of his uncle Arvind Lalbhai.