Murugappa family members reach settlement agreement

Murugappa family, the promoters of Chennai-based diversified Murugappa Group, on Sunday announced a settlement agreement among its members putting an end to the fight that arose after the death of MV Murugappan. In a statement, the family said its members have agreed to settle the disputes and differences between the family branch of late MV Murugappan (including Valli Arunachalam and Vellachi Murugappan), on one side, and the rest of the family members without disclosing details citing confidentiality.

"The family arrangement is envisaged primarily to bring about amity and maintain goodwill amongst the members of the Murugappa family, and to maintain the overall harmony within the family, in this generation, as well as in the future," it said.

The Murugappa family members first discussed and concluded the terms of the family arrangement amongst themselves at a meeting in the presence of their respective advisors and the understanding was recorded on Sunday by way of a memorandum entered into by the members of the Murugappa family with the family branch of late MV Murugappan.

M V Murugappan, who was the former Chairman of Carborundum Universal and the senior most member of the family, died on September 19, 2017.

"The family members are committed to undertaking the necessary transactions to effect the family arrangement within the next 90 days," it added.

As part of the family arrangement, the parties have also agreed that all legal proceedings between the family groups will be withdrawn as per the terms of the family arrangement after all agreed steps specified in the family settlement have been completed.

The statement, however, said that "no listed company forming part of the Murugappa Group is a party to the family arrangement, and nothing in the family arrangement relates to the management or control of, or grants any special rights to the parties in, any such companies".

The group has 11 listed entities, including Carborundum Universal Ltd, Cholamandalam Investment and Finance Company Ltd, Coromandel Engineering Company Ltd, Coromandel International Ltd, EID Parry (India) Ltd and Tube Investments of India Ltd, among others.

Quoting family representatives, the statement said, "The family arrangement ensures that all the issues between the members will be settled, and they are happy that they have agreed to resolve this amicably. The terms of the family arrangement itself are confidential."

The Rs 74,200-crore Murugappa group, which began in the banking markets of Burma in the 1900s, currently operates 29 businesses catering to diverse markets around the world. It has a presence in 40 countries across six continents employing over 73,000 employees.

Its businesses span from agriculture, engineering, and financial services to others such as tea, rubber, construction, polymer fabrics, textiles and travel solutions.