Monday October 12, 03:47 AM

Source: Indian Express Finance

Corporate India lauds reconciliatory efforts, says it's positive for economy

By fe Bureaus
The protracted battle between the two brothers has not helped India Inc as it strives to attract more foreign investment, or in its moves to globalise. The issue had caught international attention, and in March this year Time magazine advised Mukesh Ambani to settle the spat with younger sibling Anil over a pillow fight using pillows stuffed with $1,000 bills. Our proposal: duke it out using pillows stuffed with $1,000 bills, Time had jocularly said. It may not be Time s comments, but, as Anil put it in his statement on Sunday, the advice of many elder statesmen, trusted family members, and long-standing friends of the late Dhirubhai Ambani that has now put pressure to reach a reconciliation. According to Ganesh Natarajan, former Nasscom chairman and Zensar CEO, This whole battle has created too much of negativism in the corporate world. It will be a good thing if they can come to a compromise, especially when the economy has just passed through a tough phase. Any conciliatory move will provide an added gusto to the corporate world. Hitesh Agarwal, head of research, Angel Broking, said if the brothers settled their dispute out of the court, it would be a win-win situation for both, shareholders of Anil-led RNRL (RNRL.NS : 67.25 -0.45) and Mukesh-run RIL (RELIANCE.NS : 1045.95 -17.8). Ever since the RIL-RNRL case went to high court, and now the Supreme Court, share movements of both the groups have been volatile depending on the court proceedings. An amicable settlement will bring stability to their stock price, he added. The government, which is the third party in the case, also stands to benefit as it is losing out crores in terms of royalty, taxes and profit share due to the ongoing legal battle. According to VN Dhoot, chairman, Videocon Industries (VIDEOIND.NS : 233.6 -1.65), Anil Ambani is a visionary. The day both brothers are united, it will be a golden occasion for corporates. Well wishers of the Ambani family had long wanted to see an early end to the dispute between the brothers. Hiranandani Constructions MD Niranjan Hiranandani said, It does not matter whether they are separate or together in running the business. What really matters is not having any animosity. Incidentally, Niranajan and brother Surendra Hiranandani share much cordiality despite going their own ways this year through a separation in businesses. Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj said, This is a good news for the Indian corporate sector. In times of professional disputes between two brothers in any family, internal support in settling disputes becomes imperative.