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Fifty Years at the Helm...

hese words portray the ethos of the Chairman, the underlying philosophy with which he has steered the

fortunes of the Company for over half a century.

“I was not aTea man,”

he says humbly. He was invited by

the Partners in London to join Williamson Magor in 1962 when a crisis occurred. The shareholdings of

Bishnauth Tea Company were at risk; it was a question of either losing the Company or paying the price for the

shares, to get the holding back into the fold. In his own capacity as a friend connected by way of trading,

Mr Khaitan had created a trust in the minds of the Partners and was confident in giving them advice on the steps

to take in these circumstances. In September 1962, he met with them in London and affirmed that BishnauthTea

Company was the pride of the rupee companies and without it Williamson Magor would not be worth its weight

in the tea industry. It was imperative that the shares be purchased and the finances for the investment would be

provided by him. This suggestion was agreed upon and Mr Khaitan was invited to join them as a Partner.(At that

point in time, Gladstone Lyall, with their shipping interests, had a 49% share in the Company, the remaining 51%

being held by Williamson Magor.)

“It is an honour if you invite me and for me to accept,”

said

Mr Khaitan.

“I like working withWilliamson Magor as it is a family set-up and fits in with our way of thinking.”

On the afternoon of 4 September 1962, Mr Khaitan received the letter inviting him to join the Company as a Partner.

The price of the shares was not mentioned but he signed the document with no questions asked.The Senior Partner,

Mr O.J. Roy, pointed out that finances had not been discussed. Mr Khaitan replied,

“You are the Chairman of the

Company, looking after five Partners; you might as well look after the sixth!What you feel is fair and justified I will accept.”

Mr Roy confirmed that this was not the issue; Mr Khaitan would be looking after their interests in India. A twenty

percent premium would be charged to conciliate the shareholders. Thus the document was signed and Mr Khaitan

became a one-third partner in the ‘box’.

At the close of this momentous year, in the month of December, the infamous Chinese Aggression took place. The

expatriate managerial staff on the estates was worried as to the repercussions of invasion and many wanted to return

home. Mr Khaitan was then a shareholder with the Company but it was widely known that the constitution of the

Board ofWilliamson Magor had changed and he would be a Member. He took the view that nobody should restrain

executives from leaving the country. Meanwhile the ceasefire came into being and very few personnel left the services

of the Company.

The following year, 1963, the application to the Government of India for approval to modify the shareholdings was

made. It took eight months for the submission to be accepted and in December, on the polo grounds, a popular

venue in the social calendar of the cold weather months in Calcutta, Mr O.J. Roy enquired of Mr Khaitan if he would

look after the affairs of the Company after Mr Peter Nicholls retired on 31December. Subsequently, at a Board

meeting on 4 January 1964, Mr Khaitan was co-opted as Managing Director and Active Director ofWilliamson Magor.

There was however a setback with regard to the 49% share in the Company which belonged to Gladstone Lyall; the

business had been bought over by Mr G.D. Jatia on the basis of these shares in Williamson Magor. The Chairman,

Mr Pat Williamson, was of the opinion that till the legal matters concluded, Mr Khaitan should not visit the estates

in Assam. He, however, attended Board Meetings and dealt with correspondence.

In 1965, the Company suffered a great loss when Mr Pat Williamson, fondly known as ‘the last of the nabobs’,

suddenly passed away.There was no scheduled Board Meeting for a period of four to five months and a vacuum was

created for Chairmanship till Mr Khaitan persuaded the Company that matters had to be finalised with regard to

Gladstone Lyall. The result was a three-way structure - 33% holdings with the Magors, 33% with Mr Khaitan and

33% with Gladstone Lyall (who retained shipping); Mr Khaitan took over as Chairman of the Group. Subsequently,

Gladstone Lyall sold their shareholding to Magor Holdings Limited.

The following year, Mr Khaitan travelled to Assam. Pertabghur T.E. (Bishnauth Tea Company) was the first garden

he visited. There was a purpose behind this decision. The acquisition of Bishnauth Tea Company triggered

Mr Khaitan’s interest in Tea and hence he had a special regard for this property. It was decided that the upcountry

Head of the Group would be located at Pertabghur T.E. The Visiting Agent, Mr John Morice, who was stationed at

Sangsua T.E. ( Moabund Tea Company), was invited to join the Board, as was Mr Eric Hannay, the Advisor at

Keyhung T.E. (Tingri Tea Company). With these two gentlemen relocating to Calcutta, Mr R.R.L. Pennel, Senior

Superintendent, Bishnauth Tea Company, took charge at Pertabghur.

In business, as in life, there are ups and downs...but even in the

most difficult of times I do not believe I ever changed my principles of

kindness, honesty and integrity.

“

”

B.M. Khaitan

(July 2013)