Bhowmik: Role call

Calcutta, March 1: Swapan Bhowmik, managing director of Haldia Petrochemicals (HPL), may get a short extension till a new head is found to run Bengal’s second-largest industrial enterprise.

The HPL board will meet tomorrow in Mumbai to discuss the selection of a managing director as the incumbent is set to retire on March 31. Bhowmik had got a three-year extension in 2007 after completing two years at the helm. He had joined the company as president (polymer) in 2001 and then rose to the rank of a CEO when the then managing director Richard Saldhana quit. Bhowmik became managing director in 2005.

The crucial meet is taking place at a time when the two main promoters — the Bengal government and The Chatterjee Group (TCG) — are locked in a bitter battle for the control of HPL in the Supreme Court.

Purnendu Chatterjee, chairman of TCG, is not in favour of Bhowmik getting another term as a managing director. TCG had earlier disputed Bhowmik’s ascent to the post of a director. Chatterjee has written to the board or voiced his displeasure about Bhowmik’s management several times.

However, Bhowmik continued to occupy the top post with support from the state government, which practically controls HPL now.

It is unlikely that Bhowmik will get another term this time. Both TCG and the state may agree for an extension — probably 3-6 months — for the incumbent, while kicking off a process to find a new CEO/MD who can also be an outsider.

“At no point of time can a company like HPL be left headless. There cannot be any stopgap measure. It’s a 24x7 job,” sources in HPL said. They said the company was getting back to normal functioning after completing the expansion programme. There are some worker issues and it will not be prudent to settle for an interim arrangement under the present circumstances.

TCG is in favour of setting up a management committee comprising existing board members to look after the company till a new man is found. It is willing to find a consensus candidate within the existing board for the interim period. However, the TCG camp is not completely against the idea of Bhowmik being the MD for a few more months.