N Srinivasan, Vice Chairman & Managing Director of India Cements has assured employees of the company that their jobs and future would be secure under the Aditya Birla Group-owned UltraTech Cement Ltd, which is acquiring the Chennai-headquartered company.
On Sunday, UltraTech’s board approved the purchase of a 32.72% equity stake from the promoters and their associates, following a prior acquisition of a 22.77% stake in June 2024 at ₹268 per share. The current deal, valued at ₹3,954 crore at ₹390 per share, is pending regulatory approval and will trigger a mandatory open offer at the same price.
In his message, Srinivasan said that due to ‘continuous financial struggles and unsuccessful efforts’ including to monetise some of its land holdings to revive the company, selling to UltraTech was the only viable option. He conveyed this during a video conference with employees.
He reassured them that UltraTech, led by Chairman Kumar Mangalam Birla, would continue the same policies that have been prevailing. He emphasised that good workers would be rewarded and there was ‘no need to feel insecure about their future’.
“I have been personally assured by Chairman Birla that they will follow the same policies we have so far. There will be space for everybody. They will not witch-hunt anyone and good workers will be rewarded. There is no need for anyone at India Cements to feel threatened or insecure about the future. The future is as solid as when I was head of the company. So, remove any doubts from your mind,” he said.
He also added: “You constitute the core of the cement business and must work with full vigour, believing that everything will remain the same.”
Srinivasan praised UltraTech’s good reputation and noted that the cement industry in India would continue to grow, with untouched limestone reserves in the North and North-Eastern parts of the country, likely leading to more cement plants. “There is no reason for second thoughts. Wishing you all the best. I will miss you and will meet you soon,” he said, concluding his emotional speech.
India Cements has a total grey cement capacity of 14.45 million tonnes per annum (MTPA), with 12.95 MTPA in the South (particularly Tamil Nadu) and 1.5 MTPA in Rajasthan.
UltraTech is the third-largest cement producer in the world, outside of China, with a total grey cement capacity of 154.86 MTPA.