Siyaram Silk Mills division hasn’t affected family bonding, says chairman Ramesh Poddar

For the extended and close-knit, Poddar family, there was never a question of squabbling over succession, stakes and fortunes. When the time came, as it did in 2012, the third generation amicably disentangled the cross holdings and divided the various businesses of the group founded in the 1940s.
“It was my decision,” says Ramesh Poddar, chairman, Siyaram Silk Mills , revealing that he took all of ten minutes to arrive at it. Looking back on that momentous period, Poddar says, “We were doing very well but the family was growing, business was growing. It was time.” Speaking to ETPanache at the launch of a European men’s fashion and suiting brand the company has brought to India, Poddar says that the idea to divvy up the business sprung after some amount of mental deliberation.

Separating yet staying together

Having shared his thoughts with his three brothers, he was to discover that everyone in the family seemed prepared for the moment . With expansions and each member having a unique view on running the businesses, it seemed appropriate for each to chart his own way. “We wanted to maintain the good relations we have with our brothers. And if you do this (separation of cross holdings) at that phase, it is always better,” says Poddar.

Not every business could be split equally though, but pragmatism took over. Poddar says, “ It is not important how much you got and how much the other partner got. It’s not possible that everything will be exactly fifty-fifty. What is important is doing it amicably.” The division has not affected family bonds and according to Poddar, the family continues to try and meet frequently. At the very least, Poddar says that he and his brothers meet every week. “The entire family meets in good times and bad,” he says.

Communication is the key For Poddar, having open channels of communication within the family is important. “If you are a joint family, you should meet more. If you have anything on your mind, meet, discuss and resolve. Don’t keep it within yourself,” he believes. To ensure there is no tussle over assets among the family’s younger generation, Poddar says that there is a succession plan and a family office as well. “We have so many divisions. Every division is handled by a family member. We have professionals too, who are responsible for running the business. But ultimately, it is that family member’s responsibility.” .

Keeping calm during controversy

In 2013, Vihari Sheth Poddar was arrested for undeclared jewellery worth over Rs 2 crore by the Directorate of Revenue Intelligence (DRI). At the time, Sheth Poddar’s husband Abhishek (Ramesh Poddar’s nephew) was a director with Siyaram Silk Mills. “We were very shocked when we heard about this. We didn’t know what was going on. We kept quiet and all the things were handled by her parents,” says Ramesh Poddar of the crisis faced by his brother’s family. However, he adds, “We have a reputed name. After 10 days it was forgotten by everybody.” A believer in responding — and not reacting — to volatile situations, Poddar says, “You should not react immediately as that can be dangerous. Such situations can arise, as it did in our family. But you have to keep quiet and calm.”