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In a significant development for the Indian cement industry, N Srinivasan, the long-time Vice Chairman and Managing Director of India Cements Ltd (ICL), has resigned following the completion of UltraTech Cement’s acquisition of a 32.72% stake in the company. This marks a major shift in the leadership and ownership structure of the South India-based cement maker.
UltraTech Cement, part of the Aditya Birla Group, announced on Tuesday that it had acquired 10.13 crore equity shares of India Cements, amounting to 32.72% of the company’s equity. Combined with its existing 22.77% stake, UltraTech now holds 55.49% of ICL, making the company its subsidiary effective December 24, 2024.
As a result of this transaction, N Srinivasan and other promoter-family members, including his daughter Rupa Gurunath and wife Chitra Srinivasan, stepped down from their roles in the company. Additionally, V M Mohan also resigned from the board.
India Cements informed in a regulatory filing that UltraTech has now assumed sole control of the company and is recognized as its promoter under SEBI regulations. Alongside the promoter exits, several independent directors, including S Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar, and Sandhya Rajan, tendered their resignations effective December 25, 2024.
To strengthen its management team, the board of India Cements has appointed four new directors: K C Jhanwar, Vivek Agrawal, E R Raj Narayanan, and Ashok Ramachandran. Additionally, three independent directors, Alka Bharucha, Vikas Balia, and Sukanya Kripalu, have joined the board, signaling a complete overhaul of leadership under UltraTech’s control.
The acquisition is part of UltraTech’s strategy to consolidate its position in the competitive southern cement market, a region witnessing intense rivalry between the Aditya Birla Group and Gautam Adani-led Adani Group. The Competition Commission of India (CCI) recently approved UltraTech’s Rs 7,000-crore deal, which included the acquisition of a 32.72% stake from ICL promoters for Rs 3,954 crore and an open offer of Rs 3,142.35 crore to acquire an additional 26% equity from public shareholders.
India’s cement industry is experiencing rapid consolidation as top players vie for dominance. UltraTech, the market leader with a production capacity of 156.66 million tonnes per annum (MTPA), aims to expand its capacity to 200 MTPA by FY27. Concurrently, the Adani Group is aggressively pursuing its goal of reaching a production capacity of 140 MTPA by FY28, fueled by recent acquisitions of companies like Orient Cement and Sanghi Industries.
This transition marks a historic moment for India Cements, which has been led by N Srinivasan for decades. His departure signifies the end of an era and the beginning of a new chapter under UltraTech’s leadership. As UltraTech integrates India Cements into its operations, this acquisition is set to bolster its presence in southern India and maintain its lead in the fast-growing Indian cement market.
The deal underscores the heightened competition in the sector, with both UltraTech and Adani Cement pursuing ambitious growth strategies. UltraTech is also in the process of acquiring Kesoram Industries’ cement business, pending regulatory approval, further solidifying its leadership in the industry.
