Buzz: DBS boss eyeing Citi’s consumer biz

ET’s weekly roundup of the wackiest whispers and murmurs in corporate corridors & policy parlours.Guru-shishya Parampara?They say there are no permanent friends or enemies in business and politics. Looks like that, as a little bird told us that a massive row has resulted in the parting of ways between this septuagenarian tycoon and his ‘young’ acolyte, also a reclusive billionaire, but bruised badly in recent times after losing an all-or-nothing legal war. Theories abound – some say one is blaming the other for incorrect legal advice and strategy while others feel it’s time the old warhorse, arguably one of the most pugnacious corporate bosses in the country, mended his own empire and united his fractious family. An IPO is also around the corner; guess he would not want unnecessary distractions to fight lost causes. We just hope this old gent will not send flowers to his long-time compatriot turned foe, yet again. Third time, he might just be unlucky.Life’s LessonsThe toxic work environment of yet another ed-tech unicorn is coming to the fore as its remarkably high attrition rates have begun to match its cap table and innumerable fundraises. Several employees are calling out the sycophant leadership team that is influencing the founder and his core team. Unrealistic sales targets, public bullying, name calling — we wonder if any of its pedigreed investors who otherwise champion corporate governance and corporate social responsibility are even aware of this. Biz mantra 101 says acquisitions are easy but integration is a Herculean exercise. That’s one tutorial the savvy entrepreneur will hopefully learn fast.Family InvitationAs this storied conglomerate goes into reform overdrive, we hear some churn might even take place at its apex board. The face of the group has already made clear he wants to give up all executive responsibilities and accordingly chalked out a succession plan that is already well in motion. But we hear he wants a senior member of his extended family to join the board to perhaps boost its representation on the highest decision-making council. Group watchers say this was partly on account of the gen next’s reluctance to return to India. Apart from the close connect, we hear, the gentleman concerned is familiar with the group’s core business, having his own operations that are connected to the larger manufacturing ecosystem. Years ago, a debilitating personal tragedy involving these families had changed the destiny of the entire federation of companies and we are happy to see some bonds have withstood life’s ups and downs. There have been feuds in the extended family in the past. We hope, in future, it will take a different, positive turn.Citi Slicker 82137505The buzz among bankers is: ‘How far would DBS boss Piyush Gupta go to bid for Citi’s consumer bank?’ Gupta, a former Citi man, has serious ambitions when it comes to expanding the DBS footprint in Asia. Citi may like to sell a bouquet of markets together to derive maximum valuation. While Indian banks like Kotak and ICICI are said to be keen on the local unit, DBS may be interested in buying Citi’s consumer piece in India, Malaysia, Indonesia and— who knows seven Singapore, if Citi is willing. Some markets such as Russia, Poland and South Korea (thanks to union and other issues) or even Vietnam (due to a small book) are comparatively less attractive. “I won’t be surprised if Piyush’s team is already in talks with New York (Citi headquarters),” said a banker.Reality CheckIn today’s controlled environment, we always cherish some corporate plainspeak. Naturally, when this former banker-turned-NBFC honcho laid out simple statistics to take a jibe at one of the hottest fin-tech startups that has raised tons of money, we could not hide our chuckles. Considering he has only recently pulled off an acquisition that was perceived to be no less than a coup, his contention is bound to grab several eyeballs. How can a 40-year-old consumer banking franchise with 2.7 million credit card customers, top wealth management clients and 1 million HNI bank accounts clocking `5,500 crore revenue that is on the block be valued at only $2 billion, less than that of this 2.5-year-old massively loss-making venture that was started by a second-time founder who considers himself an uncle among his millennial peers. All we can say, sometimes logic gets you nowhere even if you call a spade a spade.Sandesh ShenanigansIn Bengal, one can whip up a revolution over maach, maidan and mishti. State neighbours can try and appropriate the rasgulla, but the bhadraloks of Kolkata ain’t giving up that easy. So several eyes rolled when the name of a century-old confectionery got dragged into a recent political scandal in the state that the CBI is currently investigating. Its rapid expansion and access to prime real estate all across Kolkata and beyond has since then come under the scrutiny. It also gave the opposition fodder for attacking the political establishment. Naturally, we were stunned to see a VIP neta stopping his entourage to feast on some of its products. Some large takeaway boxes were also packed, perhaps for the flight back home.Privy to the whispers in power corridors or juicy tips on India Inc? Do share with us at etsuits.sayings@gmail.com

from Economic Times https://ift.tt/2QF0DCY