N Srinivasan quits as India Cements CEO, MD after UltraTech completes acquisition

Veteran industrialist N Srinivasan stepped down on Wednesday as CEO and Managing Director of The India Cements Ltd, following the completion of UltraTech Cement Ltd's acquisition of a majority stake in the company.

The Aditya Birla Group firm acquired 32.72% of India Cements' equity share capital, amounting to 10.13 crore shares, on December 24, 2024, according to a regulatory filing by the company. With this, UltraTech’s total stake in India Cements has risen to 55.49%, giving it sole control over the company and the status of promoter.

The erstwhile promoter group, including Srinivasan and his family members, ceased to hold any shares in the company and have been reclassified as public shareholders.

In his resignation letter addressed to the Board, Srinivasan said, "Consequent to the divestment of my entire shareholding in The India Cements Ltd, I hereby tender my resignation as Vice Chairman & Managing Director, Director and Chief Executive Officer (KMP) with immediate effect. I also cease to be the Promoter of the company with immediate effect."

Other members of the erstwhile promoter group, including Srinivasan's daughter Rupa Gurunath, wife Chitra Srinivasan, and V.M. Mohan, also resigned from their roles on the board, effective end of business hours on December 25, 2024.

The board also recorded the resignation of certain independent directors - S Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar and Sandhya Rajan with effect from the end of business hours on December 25, 2024.

The board has appointed four new directors - K C Jhanwar, Vivek Agrawal, E R Raj Narayanan and Ashok Ramachandran. Besides, three independent directors - Alka Bharucha, Vikas Balia and Sukanya Kripalu - have come on board of ICL.

In a press release issued on Friday, December 20, the CCI said, “The Proposed Combination envisages UltraTech Cement Limited’s acquisition of (i) 32.72 per cent of the paid-up equity share capital of The India Cements Limited from the promoters and members of the promoter group of India Cements and Sri Saradha Logistics Private Limited, and (ii) up to 26 per cent of the paid-up equity share capital of India Cements by way of an open offer.”

UltraTech Cement, a subsidiary of Grasim Industries Ltd, is a leading player in the manufacture and sale of grey cement, white cement, ready-mix concrete, and other building products. India Cements operates primarily in the grey cement and ready-mix concrete segments, along with other non-core businesses.

The Indian cement industry is witnessing consolidation and heightened rivalry between two corporate houses -- Kumar Mangalam Birla-led Aditya Birla Group and Gautam Adani-led Adani Group -- snapping smaller players.