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The news of N. Srinivasan's resignation as vice-chairman and managing director of India Cements sent ripples through the business world. His departure, effective immediately, marks the end of a five-decade-long association with the company, a legacy deeply intertwined with its growth and evolution. The resignation came a day after UltraTech Cement completed its acquisition of India Cements, signifying a significant shift in the company's ownership and leadership structure. The move wasn't solely Srinivasan's; his daughter, Rupa Gurunath, and wife, Chitra Srinivasan, also submitted their resignations from their respective positions as whole-time director and non-independent director. This collective departure signifies a complete severing of the Srinivasan family's direct involvement in the company's management.
The scale of the change is substantial. The Srinivasan family's history with India Cements stretches back to its co-founding by N. Srinivasan's father, T.S. Narayanaswami, in 1946, a year before India's independence. This enduring legacy underscores the profound impact the family has had on shaping the company's trajectory. Their departure therefore represents more than just a change in management; it's the closing of a chapter in the company's history. The family's resignation letters expressed gratitude to employees and offered best wishes to the new management, highlighting a degree of grace and professionalism amidst the significant changes.
Beyond the Srinivasan family, the board restructuring involved the resignations of several independent directors: S Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar, and Sandhya Rajan. This sweeping change signals a complete overhaul of India Cements' governance structure. In their place, seven new directors have been appointed, including key figures from UltraTech Cement, such as its managing director, K.C. Jhanwar, and other senior executives. This influx of UltraTech personnel solidifies the integration of India Cements into the UltraTech group and reinforces UltraTech's control over the newly acquired subsidiary.
The official announcement from India Cements explicitly stated that the former promoters and members of the promoter group, including N. Srinivasan, his family members, and associated entities, no longer hold any equity shares in the company and consequently cease to be considered promoters or members of the promoter group. This clear delineation signifies the complete transfer of ownership and control to UltraTech Cement. The acquisition highlights the ongoing consolidation within the Indian cement industry, where larger players are seeking to expand their market share through mergers and acquisitions. UltraTech's acquisition of India Cements represents a strategic move to enhance its market position and operational footprint.
Srinivasan's journey with India Cements has been far from linear. He joined the company after his father's death in 1968, facing challenges including a period of being ousted from the board in 1979 due to conflicts with co-promoters. However, his resilience led him to a triumphant return, assuming the role of managing director in September 1989. Under his leadership, India Cements underwent remarkable growth, expanding its cement plants from two to ten, significantly increasing production capacity from 1.3 million tonnes per annum (MTPA) to 15.5 MTPA. The company also experienced a dramatic increase in turnover, rising fivefold from Rs 1,033 crore in 2002-03 to Rs 5,112 crore in FY24. This testament to his leadership and business acumen underscores his significant contribution to the company’s success. However, with the acquisition by UltraTech, a new chapter begins, marking a new era for India Cements under different ownership and leadership.
The implications of this acquisition extend beyond the immediate changes within India Cements. It's likely to trigger further market adjustments and possibly influence the competitive landscape of the cement industry. Analysts will be closely watching the integration process and the impact on both UltraTech's operations and the overall market dynamics. The Srinivasan family's legacy at India Cements, marked by both trials and triumphs, serves as a case study in business resilience, strategic decision-making, and the complexities of family-controlled businesses navigating the evolving corporate world. The future of India Cements will undoubtedly be shaped by its new owner, UltraTech, and the integration process will be crucial in determining the success of this significant corporate acquisition.
Source: N Srinivasan resigns as India Cements vice-chairman and MD, family also tenders resignation