Inox Group patriarch and sons reach settlement over division of businesses

Mumbai: The Inox Group, with diverse interests in chemicals, renewable energy, modern film exhibition and industrial gases, has reached an amicable family settlement for the division of businesses.

As per the arrangement, Pavan Jain gets India's second-largest multiplex company, Inox Leisure, and Inox Air Products. His younger brother Vivek Jain gets speciality chemicals and green energy businesses such as Gujarat Fluorochemicals (GFL), Inox Wind (IWL), and Inox Wind Energy.

The current patriarch Devendra Kumar Jain, aged 92, has signed a family accord recently with a vision of expanding the business further. The businesses have been split between his two sons - Pavan and Vivek Jain.

Devansh Jain, group executive director and son of Vivek Jain, said the entire family settlement process was amicable. "We have received all regulatory approvals, the last coming this week, and now we have started a new growth journey," Devansh Jain said. "We are in the process of launching a new group logo under the brand - Inox GFL soon."

The Pavan Jain family will hold a 30% stake each in Inox Leisure (ILL) and Inox Air Products through its holding company. Inox Leisure is India's second-biggest multiplex company with 654 screens at 155 multiplexes in 69 cities. It plans to add 70-80 screens a year.

Inox Air, an industrial and medical gases manufacturer, makes medical oxygen and was a leading supplier during the second Covid wave.

A mailed query sent to the Pavan Jain branch of the family remained unanswered. They will also control an unlisted firm Inox India, manufacturers of standard and engineered cryogenic equipment and systems.

The Vivek Jain family will control and hold 66% in Gujarat Fluorochemicals, 67% in Inox Wind, and 69% in Inox Wind Energy. They will also continue to hold around a 3% stake in Inox Leisure through its holding company as an investment.

Shares of Inox Wind, one of India's leading wind energy solutions providers, have surged nearly four times in the past year. It has recently de-merged its infrastructure services business under the new company - Inox Infrastructure Services - and plans to take this company public to part-fund its growth plans.

Shares of GFL which is embarking on a ₹1,100-crore battery project for EVs, rallied nearly 10% on Tuesday to close at ₹2,030 while Inox Wind Energy gained 3% to ₹930. However, Inox Leisure and Inox Wind shares declined by 4% and 2%, respectively.