PRS: Presiding over it all

Mumbai, Aug. 7: Vikram and Arjun Oberoi — grandsons of late Rai Bahadur Mohan Singh Oberoi — have stepped into the EIH boardroom as deputy managing directors.

East India Hotels, set up by Rai Bahadur Mohan Singh Oberoi, is now spread across several countries.

At the annual general meeting on August 18 in Calcutta, the company will seek shareholders’ approval for the appointment.

Sources said with this move, the Oberois have put in place a succession plan for the two cousins of the third generation Oberoi clan, even as P. R. S. (Biki) Oberoi continues to head the hotel chain as chairman. Vikram Oberoi is P. R. S. Oberoi's son, while Arjun is Tilak Raj (Tiki) Oberoi's son.

Observers feel the succession plan is on expected lines.

Arjun: Learning on the job

“It is a good move to ensure that both cousins have got the same break,” an observer said. Sources feel Vikram will look after operations, while Arjun will be in charge of business development.

There were three people who assisted M. S. Oberoi in setting up his hotel empire. His sons Biki and Tiki and his son-in-law Gautam Khanna. Tiki died several years ago.

Khanna was in charge of Mercury Travels, the travel wing of EIH Ltd, before exiting the company some years ago to start his own outfit. Khanna's Ananda in The Himalayas is touted as the country's first spa in Garhwal Himalayas.

Analysts expect the young cousins to infuse more energy into the group.

In several other companies, young members have proved lucky. Rajiv and Sanjiv of Bajaj Auto, Malvinder and Shivinder of Ranbaxy and the Kanwars of Apollo Tyres have all revitalised their companies.

The two Ambani brothers have taken Reliance to further heights, while the Godrej scions are slowly taking over.

The Oberois as promoters of EIH hold almost 42.50 percent of the company.

Vikram: Taking charge

Veteran hotelier and EIH managing director S. S. Mukherjee will guide the young Oberois. At the board meeting held in late June, Mukherjee was re-designated as the vice-chairman and managing director while Arjun and Vikram became deputy managing directors. When founder M. S. Oberoi was alive, P. R. S. Oberoi was vice-chairman and managing director.

EIH officials said a press briefing will be held after the meeting on August 18. P.R.S. Oberoi could not be contacted.

Vikram and Arjun were wholetime directors of Oberoi Hotels Private Ltd. However, after their appointment on the board of EIH, they have ceased to be directors of the private company. Arjun is also the managing director of Mashobra Resort, a subsidiary, but does not draw any remuneration from that company. He will continue in the post.