Pentafour to revamp group cos, induct experts on boards

The Chennai-based diversified Pentafour group has decided to reorganise the management of its companies. Their boards are also to be reconstituted shortly by inducting experts from relevant fields.

Besides, the group is constituted an advisory group. The new corporate strategy is aimed at meeting the challenges of new economic order and globalisation and giving proper directions for future growth of the four listed companies.

In the last one decade, the group has emerged a big force in the south with interests in software, communication, power, non-conventional energy, auto components, electronics, chemicals and air conditioning. It has drawn up plans for further development and strengthening of its position in core areas.

The group, expected to post a turnover of Rs 600 crore this year has four core promoters. Now, the group is headed by Mr V Ramakrihnan as Chairman. The other promoters are his two brothers Mr V Viswanathan and V Chandrasekaran and Mr S N Rajan, brother in law of Ramakrishnan.

As a first step towards organisational restructuring, it has been decided to elevate Mr Chandrasekaran, the present managing director of Pentafour Software and Exports Ltd as Chairman and MD of the company and also Mr Rajan, MD of Pentafour Solec Technology Ltd as its CMD.

While Mr Ramakrishnan will continue to manage Pentafour Products Ltd, Mr Viswanathan will look after Pentafour Communications Ltd.

It is claimed that there is no split among the promoters and their cross representation on the boards of four companies will continue. Similarly there will not be any change in the holding pattern. The promoters' hold in excess of 50 per cent stake in the firms.

The group announced on Monday that apart from re-positioning the professionals, experts would be joining the boards. This would help in making the boards broad based with increased expertise in technical, financial and management areas.

The decentralisation of power and induction of persons of repute are expected to lead to effective utilisation of resources and talent besides in achieving faster growth of the firms and higher profitability.

The proposed advisory board will have renowned persons in the fields of technology, business management and finance. It will also have senior executives of the group. This is aimed at providing effective guidance and advice in the group's multifarious activities towards globalisation and faster growth.

(Courtesy The Economic Times)