Dalmia Group

The Dalmia Group refers to a grouping of Indian companies, which trace their origin to the businesses established by Ramkrishna Dalmia and Jaidayal Dalmia. The Dalmia brothers established a business conglomerate in eastern India, in the first half of the 20th century. In the 1930s, the group merged with the businesses of the Sahu Jain Family to form the Dalmia-Jain Group. In 1948, the two families decided to split the businesses; the Dalmia businesses were further divided between Ramkrishna and Jaidayal. Today, a number of companies and conglomerates trace their origin to the original Dalmia businesses; these include Dalmia Bros, Dalmia Bharat Group, Orissa Cement, Renaissance Group and their subsidiaries.

History

The Dalmia Group of companies traces its origins to Ramkrishna Dalmia and Jaidayal Dalmia. The two Marwari brothers were born in the present-day Rajasthan; the name Dalmia comes from the name of their ancestral village in present-day Haryana. The Dalmias established a group of businesses in East India in the first half of the 20th century. These businesses included a sugar mill in Danapur and a commodity trading business in Calcutta. In 1932, Ramkrishna Dalmia's daughter married Shanti Prasad Jain of the wealthy Sahu Jain Family. Subsequently, Shanti Prasad and the Dalmia brothers worked together to expand the business, resulting in the formation of the Dalmia-Jain Group. By the end of 1940, the group was operating several sugar mills, cement plants, chemical factories, engineering plants and a paper mill.[1]

The Dalmia-Jain Group challenged ACC's monopoly in the Indian cement industry by setting up cement factories all over India (including the present-day Pakistan). The Group also ventured into other businesses; its subsidiaries included Bharat Bank, Bharat Fire and General Insurance, Lahore Electric, Govan group of companies, two cotton mills, a dairy, and three Andrew Yule jute mills.[2] In 1946, Ramkrishna Dalmia bought out Bennett, Coleman & Co. Ltd., the publisher of The Times of India; he later sold it to the Jains after a split in the Dalmia-Jain Group.

By 1948, differences had developed between the Dalmias and the Jains. On 12 May 1948, the two families worked out the details of a split at the family house of the Jains in Mussoorie.[1] On 31 May 1948, the Dalmia-Jain Group was dissolved, splitting into what were colloquially known as Dalmia Group (divided between Ramkrishna and his brother Jaidayal) and Sahu Jain Group.[3] However, this split was not official: there was no legal document to this effect.[2] Vivian Bose remarked that the Dalmia-Jain Group's affairs "were so interlocked and complex because of black money and secret, undisclosed assets and undetermined income tax liabilities, that this (dissolution or partition) was not found to be easy".[4]

After the split, Jaidayal Dalmia gained control of Dalmia Cement (Bharat) Ltd., established in 1939 and Orissa Cement Ltd., established in 1949. Later, his sons Jai Hari Dalmia and Yadu Hari Dalmia took control of Dalmia Cement. Three other sons - Ajay Hari Dalmia, Mridu Hari Dalmia and Raghu Hari Dalmia - took over the Orissa Cement business. In 1999, Ajay Hari Dalmia separated from Orissa Cement, and started his own line of businesses under the name Renaissance Group.[5]

In 1956, the Government of India set up a Commission of Inquiry to investigate alleged malpractices of the Dalmia-Jain Group of companies. The Commission was headed by Justice S. R. Tendolkar (and after his death, by Justice Vivian Bose).[1] In 1962, Ramkrishna Dalmia was jailed for tax evasion, perjury and criminal misappropriation of funds. By the time he died in 1978, he had 17 children from 6 wives. These heirs fought several court cases for control of the various businesses owned by him.[4] In 1983, these businesses were divided among his seven sons.[6]

Offshoots

Dalmia Bros

Dalmia Bros. Pvt. Ltd. originated from the businesses controlled by Jaidayal Dalmia's son Vishnu Hari Dalmia. This group of companies is now managed by his sons Sanjay Dalmia and Anurag Dalmia.[6] The group's businesses include:

Dalmia Industries

Dalmia Industries (BSE: 519393) is a part of the Sanjay Dalmia Group. It descends from a company that was incorporated in 1937, in Bihar. The original company manufactured dairy products, including powdered milk and ghee, under the Sapan brand. It also traded in peanut candy, mustard oil and crash helmets. In the late 1960s, Dalmia Industries took over on lease the Dalmiapuram-based manufacturing and refactory plants from Dalmia Cement (Bharat), Ltd. The business was carried out under the name Dalmia Ceramic Industries. Dalmia Industries also set up a plant at Bharatpur (Rajasthan) for manufacturing powdered milk and ghee. On 6 March 1975, the name of the company was changed from Dalmia Cement Limited to Dalmia Dairy Industries Limited. The name was changed to Dalmia Industries Limited in 1989.[7]

Dalmia Bharat Group

The Dalmia Bharat Group is engaged in cement, sugar, thermal power and other businesses. Its subsidiaries include Avnija Properties Ltd and DCB Power Ventures Ltd. The Group traces its origin to Dalmia Cement (Bharat) Limited, established in 1939. After the Dalmia-Jain Group's split, it was controlled by Jaidayal, and later by his sons Jai Hari and Yadu Hari. The Dalmia Bharat Group was officially incorporated on 10 February 2006 as Sri Kesava Mines & Minerals Limited, with its office in Dalmiapuram, Tamil Nadu. On 19 February 2010, the name was changed to DCB Renewable Energy and Industries Limited. On 25 March 2010, the name was changed; this time, to Dalmia Bharat Enterprises Limited. The present name, Dalmia Bharat Ltd was adopted in 2012.[8]

The total turnover of the group has been Rs. 7000 crore. The Group operates the following businesses, all registered in Tamil Nadu:

OCL

OCL (BSE: 502165, NSE: OCL) traces its origin to the cement plant set up by Jaidayal Dalmia at Rajgangpur during 1950-51. Originally named Orissa Cement Limited, the company was incorporated on 11 October 1949, and the plan started operating in 1952. On 15 January 1996, the company changed its name to OCL India to reflect its non-cement ventures, including steel and iron.[9] After Jaidayal Dalmia's death, OCL was controlled by his sons Ajay Hari Dalmia, Mridu Hari Dalmia and Raghu Hari Dalmia; Ajay Hari separted in 1999, to start his own venture under the name Renaissance Group.[5]

Other

Hari Machines was established in 1971 as a manufacturing division of the Dalmia Group.[10] Marathwada Refractories Ltd (BSE: 502250) is controlled by Mridu Hari Dalmia's family.[11]

Jaidayal Dalmia's son Ajay Hari Dalmia established Renaissance Group, which holds stakes in Revathi Equipment Limited, Rajratan Global Wires Ltd., Shogun Organics Ltd., Monarch Catalyst Pvt. Ltd. and Semac Consultants Pvt. Ltd.

Dalmia Continental Privated Limited (DCPL) and Sunshine Tourism were established by Vidyanidhi Dalmia, son of Ramkrishna Dalmia.[12]

References

  1. 1 2 3 Sangita P. Menon Malhan (2013). The TOI Story. HarperCollins India.
  2. 1 2 Stanley A. Kochanek (1974). Business and Politics in India. University of California Press. p. 342.
  3. ↑ Report of the commission of inquiry on the administration of Dalmia-Jain companies. India. Department of Company Law Administration. 1963. pp. ii.
  4. 1 2 Sumit Mitra (1980-10-15). "The Dalmias: A house divided". India Today.
  5. 1 2 Renaissance Group: Our legacy
  6. 1 2 The Rise, Fall & Rise Of Indian Business Families
  7. ↑ Company History - Dalmia Industries
  8. ↑ Company History - Dalmia Bharat Ltd.
  9. ↑ OCL India Ltd Investor Center
  10. ↑ Hari Machines
  11. ↑ Marathwada Refractories Ltd.
  12. ↑ Interview with VN Dalmia, Indian Olive Association by Gita Narrayani. Olive Times, 16 July 2010.

External links

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