G M MODI• His father purchased the mill in

1894.Gujarmal was the second child of Multanimal modi.He

joined his father’s business as a munim (Accountant)

• He founded the group in 1933 with a sugarcane factory.• He built up a vast network of industries in Modinagar, a place he

had built from scratch.

Some of the leading companies of Modi Group

• Modi Rubbers ltd.• Modipon• Modi Telefibres• Modi Alkalies and Chemicals• MG Express (later on ModiLuft)• Modi Industries• Modi Spinning

What led to the split ?

• An insecure KN Modi began quarrelling in the 1980s.• Soon, mysterious letters calculated to decreasing

Financial Investors started floating.• Kedarnath was close to PMO at that time and tried to

use it.• As a countermove in 1988, Kedarnath was thrown out

of chairmanship of flagship industry Modi Rubber by Gujarmal’s sons.

• The decline began from that point itself.• As a result of which the group finally split in 1989.

Who got what??

• At the time of split, Modi group was the country’s seventh largest with assets of Rs 900 crore and annual sales of Rs 1,600 crore.

• After the split, 60 % of assets went to GM Modi group i.e. Gujarmal’s five sons namely KK Modi, VK Modi, Sk Modi, Bk Modi and UK Modi.

• The other 40% went to KN Modi group i.e. Kedarnath’s two sons, MK Modi &YK Modi.

If that was not All !!!

• GM Modi group further divided into KK Modi group, BK Modi group ,VK Modi, SK Modi and UK Modi.

• KN Modi groups saw the elder brother Mk Modi heads Modipon fibre whereas younger brother was FICCI president in early 2000’s.

The Aftermath!!!• Barring the cigarette industry venture of KK Modi, Godfrey Philips India , none of the

other Modi enterprise is at the top.

• Several enterprises like the flagship Modi Rubber (previously under VK Modi) has been declared as sick unit in 2006 and is now a case for BIFR.

• ModiLuft controlled by SK Modi failed and he had to move out of it before it turning into Spicejet and sold to Maran’s.

• Modi telefibres’s share prices touched an embarrassing 10 paisa in 1997.

• Even Spice telecom venture hasn’t worked out well for BK Modi.

• As evident almost all the ventures be new or old have proved futile for India’s one’s leading Family Owned Business Houses.

KK Modi Group

• Godfrey Philips India, Modi Entertainment Network are some of the ventures of the KK Modi which have been doing reasonably well.

• The group is presently worth Rs. 4000 crores.• As part of GPI ltd , KK Modi is eyeing 51% shares to capture

majority stake in the venture as per the reports recently published.

• KK Modi has three children, two sons and a daughter.• Charu, Lalit and Samir.

• Link:http://tehelka.com/story_main9.asp?filename=Ne122504modies_erase.asp

• http://myiris.com/shares/company/announceDisplayNew.php?ppg=5&icode=MODRUBBE&max=15&show=1

• http://www.hinduonnet.com/2005/05/29/stories/2005052902091200.htm

• http://www.livemint.com/2008/06/25000550/SpiceJet-Modi-call-truce-to.html

• http://www.moneycontrol.com/company-facts/spicejet/history/SJ01