Chennai, December 25, 2024: The corporate landscape of India Cements underwent a significant transformation on Wednesday, as the company’s promoter shareholders and key executives tendered their resignations following UltraTech Cement’s ₹7,000-crore acquisition. With UltraTech becoming the majority shareholder, the changes mark a pivotal moment in the cement manufacturer’s history. (India Cements CEO Srinivasan Resigns, UltraTech Cement Acquisition of India Cements)
UltraTech Cement Completes Majority Stake Acquisition
On December 24, UltraTech Cement announced the successful completion of its acquisition of 32.72% of India Cements’ equity shares, raising its total stake to 55.49%. This move follows the approval of the deal by the Competition Commission of India (CCI) on December 20, 2024. As part of the deal, UltraTech also made an open offer for 26% of India Cements’ share capital, inviting public shareholders to participate at a price of ₹390 per share.
Executive Resignations Shake Up India Cements
The impact of this acquisition was swiftly felt across the board, with India Cements’ key personnel stepping down. N Srinivasan, the company’s CEO, alongside several other board members, resigned effective immediately. Other significant departures include his daughter Rupa Gurunath, wife Chitra Srinivasan, and VM Mohan. Independent directors such as S. Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar, and Sandhya Rajan also vacated their posts, signaling a full-scale restructuring.
In addition, India Cements’ CFO, R Srinivasan, is set to retire on January 1, 2025, marking the end of an era for the company. These resignations, following the acquisition, are a part of the corporate realignment, as UltraTech takes control of the cement manufacturer.
UltraTech Cement: A Stronger Player in the Market
With the acquisition, UltraTech Cement has solidified its position as a dominant force in the Indian cement industry. The company now holds a combined market share of 55.49%, surpassing the 8% market share of India Cements. UltraTech, which already commands a 21% share of the market, further consolidates its presence in the competitive cement sector.
This acquisition places UltraTech in a strong position to expand its footprint in the Indian market, currently dominated by players like Wonder WallCare (39%), Ambuja Cement (13%), and Dalmia Bharat (8%). UltraTech’s strategic move enhances its capabilities to serve both regional and national markets more effectively.
India Cements’ Strategic Reshuffling: New Directors Appointed
In response to the leadership changes, India Cements has appointed four new directors to its board: KC Jhanwar, Vivek Agrawal, ER Raj Narayanan, and Ashok Ramachandran. Additionally, independent directors such as Alka Bharucha, Vikas Balia, and Sukanya Kripalu were inducted, signaling a new phase for the company under UltraTech’s majority control.
Market Reactions
India Cements’ stock saw a positive jump of 1.75%, closing at ₹372.55, while UltraTech Cement’s shares closed 0.63% lower at ₹11,395.55. The market reactions reflect the investors’ mixed feelings on the long-term effects of the acquisition, even though India Cements continues to hold a significant market share despite the leadership changes.
Looking Ahead: What’s Next for India Cements and UltraTech?
As UltraTech Cement takes full control of India Cements, the company is poised to benefit from greater operational efficiencies and synergies in production and distribution. The full impact of the restructuring, however, will unfold in the coming months, with many industry experts keenly observing how the shift in leadership influences India Cements’ market strategies and growth trajectory.
The departure of long-standing figures like N Srinivasan and the entry of fresh faces on India Cements’ board could signal a new direction for the company, with the backing of its new majority shareholder, UltraTech Cement. For now, the cement giant stands at the threshold of an exciting new chapter in India’s construction and infrastructure sector.
Conclusion: A Game-Changing Acquisition in the Cement Industry
The acquisition of India Cements by UltraTech Cement not only reshapes the company’s leadership but also strengthens UltraTech’s position as a key player in the cement industry. With the full integration of India Cements into its fold, UltraTech is set to lead the sector in terms of both market share and production capabilities, heralding a new era of consolidation and growth.
