HISTORY OF THE GROUP OF

COMPANIES
BEGINNING
• Founded in 1933, a plant was setup 40 km
north-east of Delhi

• Plant was setup for production of sugar.

• Then moved into vanaspathi, rubber, paper,

chemicals etc.
 GROWTH
• 7th largest conglomerate by late 70’s

• Assets over Rs.900 cr. and sales of Rs.1600 cr.

 START OF THE FUED
• Gujarmal and Kedar Nath were the business
heads of the company.
• After Gujarmal’s death the companies were
headed by Kedar Nath.
• Kedar Nath initiated action to divide the share
among his three sons.
• Feud among the sons of Gujarmal and Kedar
Nath as a result.
 Start of the feud(contd.)

• Kedar Nath used political connections to

attack the Modi family
• Accusations on Modi family for violating FERA
Act and Over-invoicing of imported machinery
,no intention of paying FI’s were charged.
• Modi group removed Kedar Nath from Modi
Rubber in 1998.
 Solution to the Feud
• The companies were divided in 60:40 ratio.

• Gujarmal’s 5 sons held 60% while Kedar Nath’s

3 sons held 40% share.

• Modi rubber held by Gujarmal’s sons and

Modi mills came under Kedar Nath’s camp.
 KK Modi VS MK Modi
• Settlement divided into two- chemical to MK
Modi and fibre to KK Modi
• Went to court in 2002 result of notice issued
by UPSIDC.
• MK moved court for attaining UPSIDC shares.
• KK opposed the movie due to fear of loss of its
position
• Court allowed purchase of UPSIDC to MK and
tried to mediate between the two brothers.
 BK Modi vs VK Modi
• Fight for attainment of Modi rubber. Agreement
made where both gained 24%.
• Rift between BK and VK regarding contract
manufacturing with Apollo tyres.
• On 30th June 2001, BK Modi stripped of all his
functional authorities.
• BK battled back claiming it was breach of
shareholder’s agreement.
• VK was eventually the winner as his stake went
up by 66%.