Vadilal Industries, a leading ice cream manufacturer based in Ahmedabad, is set to undergo a significant management restructuring following a resolution between its warring promoters, the Gandhi family. The fourth-generation members of the family, who had been embroiled in disputes over the company’s strategic direction and governance, have reached an agreement aimed at improving corporate governance and maximizing shareholder value.
In a stock exchange filing on March 30, the Gandhi family members—Rajesh R. Gandhi, Janmajay V. Gandhi, and Devanshu L. Gandhi—revealed they had signed a “memorandum of family arrangement” to separate ownership from management and streamline the leadership structure.
Under the new arrangement, all family promoters will retain equal ownership participation while transitioning the day-to-day operations to independent professional management. The company’s board will be reconstituted, pending the withdrawal of ongoing appeals at the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT).
As part of the restructuring, family members will step down from key management roles such as Managing Director and Chief Financial Officer, assuming positions as executive directors instead. To enhance corporate governance, the company has appointed four independent directors.
In a move to strengthen the company’s brand presence, the promoters also plan to house the ownership of the “Vadilal” brand within the company. Currently, the brand is used under a non-exclusive license from a promoter group entity for a limited period. To facilitate this transition, three promoter-owned companies—Vadilal Finance Company Private Limited, Veronica Constructions Private Limited, and Vadilal International Private Limited (which holds the “Vadilal” trademark)—will merge with Vadilal Industries.
This consolidation will secure continued ownership and control of the brand, ensuring Vadilal Industries can maintain its strong market presence and meet growing consumer demand.
The family dispute, which had been playing out in legal forums, stemmed from differences over the company’s future vision, uneven growth strategies, and governance conflicts. The resolution of this dispute marks a pivotal moment for Vadilal Industries, positioning the company for long-term stability and growth.
The stock market has responded positively to the news, with Vadilal Industries’ shares rising by 28.18% in the past month, reflecting investor confidence in the company’s renewed leadership and strategic direction.
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