N. Srinivasan Steps Down Following UltraTech's Acquisition of India Cements

N. Srinivasan has stepped down as the Vice Chairman and Managing Director of India Cements Ltd (ICL) following UltraTech Cement’s acquisition of a controlling stake in the company. On December 24, 2024, UltraTech Cement, part of the Aditya Birla Group, completed the purchase of a 32.72% stake in ICL, bringing its total ownership to 55.49%. This move marks the end of the Srinivasan family's control over the company, as ICL has now become a subsidiary of UltraTech.

The deal, valued at ₹3,954 crore, saw UltraTech acquire 10.13 crore equity shares from ICL’s promoters. This acquisition increases UltraTech's presence in the southern cement market, where India Cements had a strong foothold. This move is part of UltraTech’s broader strategy to strengthen its position in the highly competitive Indian cement industry, where consolidation has become a key trend.

In addition to Srinivasan’s resignation, several other key members of the ICL board also stepped down. His daughter Rupa Gurunath, wife Chitra Srinivasan, and V M Mohan all resigned following the completion of the acquisition. These changes reflect the shift in control as UltraTech assumes full control over the company.

To replace the outgoing directors, UltraTech appointed four new board members: K C Jhanwar, Vivek Agrawal, E R Raj Narayanan, and Ashok Ramachandran. Additionally, three independent directors—Alka Bharucha, Vikas Balia, and Sukanya Kripalu—were also added to the board. These appointments align with UltraTech's vision for ICL and its growth in the cement industry.

The deal is part of an ongoing consolidation in the Indian cement sector, which is seeing significant competition between major players like UltraTech and Adani Group. UltraTech, with its acquisition of ICL, now controls 156.66 MTPA (million tonnes per annum) of cement capacity, positioning it as a market leader. At the same time, the Adani Group is expanding its cement business, with plans to reach a production capacity of 140 MTPA by FY28. Recent acquisitions by the Adani Group, including Orient Cement and Sanghi Industries, are part of this strategy to capture more market share.

This intensifying competition between UltraTech and Adani is likely to result in further consolidation in the sector, as smaller players are absorbed by these two industry giants. Such consolidation could lead to greater control over pricing and market strategies, while also driving innovations in products and processes. The growing demand for cement in India, fueled by infrastructure development and urbanization, is further motivating these moves in the industry.

The changes at India Cements, following UltraTech's acquisition, highlight the shifting dynamics in the cement industry. With UltraTech’s strengthened position and the increasing competition from Adani Group, the sector is likely to witness more mergers and acquisitions. This growing rivalry will continue to shape the future of cement production and consumption in India.