The Hindu Business Line : SABMiller still keen on SWC stake

SABMILLER, the world's second largest brewer, has indicated that it will remain on course to buy a strategic stake in the Manu Chhabria family controlled Shaw Wallace & Co's (SWC) beer business.

This comes in the wake of a legal note despatched by the estranged scion of the Chhabria estate, Ms Bhavika Godhwani (Kanchan Chhabria), to the multinational brewer.

Ms Godhwani, the eldest daughter of the late Manu Chhabria, in her latest salvo fired at SABMiller has drawn the latter's attention to the simmering family dispute. Ms Godhwani had moved a Dubai court towards the end of the last year seeking her share in the estate left behind by her father, the founder of the $1.5-billion Jumbo Group.

SABMiller has responded to the note through its lawyers Amarchand Mangaldas, stating that it has not acquired any shares in SWC and any plans to do so in future will be in tune with the legal proceedings.

When contacted, Mr Richard Rushton, Managing Director of SABMiller India Ltd, confirmed the company's correspondence. He refused to talk further on SABMiller's talks with SWC and its implications on a possible deal.

"We mean what we have stated. We will do things straight and according to rules in India," he said. He offered no comment when probed on SABMiller's strategy in the event of a long, unwinding legal battle. However, Mr Rushton said SABMiller will not be intimidated by any posturings. "We know India. We have worked in more difficult markets. One must bear in mind that SABMiller is a different multinational," he added.

It is learnt that Ms Godhwani's move is perhaps aimed at bringing SABMiller into the ambit of what is essentially a family dispute and force the rest of the estate into a negotiated settlement. The industry observers also suggested that Ms Godhwani would provide a platform for business rivals to stall an alliance between SABMiller and SWC which will be significant for the Indian beer industry.

SWC is the second largest domestic brewer and a deal with the multinational may place the combine in a position to topple the UB group as the leading Indian beer company.

Sources close to Ms Godhwani said SABMiller might receive another despatch from her in the coming days. "We are preparing it and may send it as early as on Wednesday," sources said. But they refused to throw light on its contents.

A family dispute has been threatening to pull the Jumbo group in different directions following the demise of Manu Chhabria in April last year. The eldest daughter and her husband, Mr Manoj Godhwani, took legal recourse after alleging that they were being kept out of the group affairs.

The observers have related Ms Godhwani's discomfort to the growing prominence of the second daughter, Ms Komal Chhabria Wazir, an allegation which the Jumbo group has denied.

The Dubai-based group, currently headed by Manu Chhabria's wife, Ms Vidya Manohar, has controlling interests in Indian companies such as Dunlop, Shaw Wallace, Falcon Tyres, Mather & Platt, Gordon Woodroffe and Hindustan Dorr Oliver.

Ms Wazir has been involved with the running of most of these Indian companies, while the third daughter, Ms Kiran Chhabria, has exposure to Jumbo's electronics business in West Asia.

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