N Srinivasan.
Credit: indiacements.co.in
Chennai: Confirming his exit from the company, India Cements Vice-Chairman and Managing Director N Srinivasan on Monday said the decision to sell the firm to Ultratech Cement Limited was triggered by a slew of issues, including the failure in monetising some of its land holdings to offset losses.
An emotional Srinivasan, who has been helming India Cements since 1989, gave a categorical assurance to his employees that Ultratech has promised him that there will be no change in policy and that their jobs and future are secure.
Speaking to the head of departments, and senior executives of the company via video conferencing, Srinivasan, according to sources in the know, said the cement industry in India will continue to grow as several limestone reserves in the country’s north and north-east remain untapped.
His address comes a day after UltraTech Cement Ltd, India’s leading cement manufacturer, announced it will acquire an additional 32.72 per centequity stake owned by the promoters and their associates in India Cements Limited.
The former BCCI chief told his colleagues that the price war in the cement industry and not being able to reduce costs are some of the reasons for him to sell the stakes controlled by his family to Ultratech.
“We were dependent on monetising some of our land holdings to come out of the problems. But that did not happen. Therefore we thought of (this) solution. Company changing hands doesn’t mean change in your career,” Srinivasan was quoted as saying by the sources.
The India Cements boss said he has been personally assured by Kumar Mangalam Birla, Chairman of Aditya Birla Group, that he will follow the same policy.
“Good workers will be rewarded. In my assessment, there is no need to feel threatened or feel insecure about the future. The future is good and it is as solid as when I was the head. Remove from your mind any doubts that you have,” Srinivasan added.
Meanwhile, UltraTech said in a regulatory filing that India Cement Ltd (ICL) would remain a listed entity and it has no "intention to delist" the former. “The acquirer does not have the intention to delist the target company (ICL) pursuant to this open offer," Axis Capital, which is managing the open offer for UltraTech, said.