IVRCL plans to bring in new leadership by 2013

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April 14: Come 2013, Hyderabad-based IVRCL group will get a new leadership, according to the succession plan chalked out by the current management.

“By next year, we would identify at least five people, who would be the next leaders of the company. By 2013, all the present top management, including me, Ashok Reddy, Balrami Reddy, Ramachandran, and Sunil Reddy, will move out of the day-to-day management of the company,” Mr E. Sudhir Reddy, the chairman and managing director of the company, told this correspondent. While Mr Ashok Reddy, Mr Balrami Reddy and Mr Sunil Reddy are the director of the parent company IVRCL, Mr Ramachandran is the managing director of the group’s BOT arm IVR Assets and Holdings.

IVRCL group is one of the major builders of water projects, roads, buildings and power transmission lines in the country. The group has three publicly-listed companies — IVRCL Infra, IVR Assets and Holdings and Hindu-stan Dorr Oliver. The combined market capitalisation of the three group firms is Rs 4,435 crore as on April 15, 2011, according to the data available on the Bombay Stock Exchange.
Mr Sudhir Reddy said the new leaders would manage the day-to-day affairs of the company in the capacity of managing director, and executive directors, while the old guard would beco-me “mother board” confining themselves to advisory role. “We are also trying to find out if there are any grey areas, where we have to bring in people from outside,” he said.

Despite a complete change at the top, Mr Sudhir Reddy feels that the succession would not be difficult as the new leaders would be from within the company. “We are giving a good two to three years of time for ourselves to prepare the ground for the succession. If we identify them now, we can train them up and probably carry them along with us to make them understand functional aspects of their new roles,” the chairman said, adding that they would also be trained at IVRCL’s development centre at Gachibowli.