These men founded India Cement before Independence, now Kumar Mangalam Birla is set to buy it for Rs…, big challenge for Adani too

Aditya Birla group also plans to maintain its lead with 200 MTPA capacity by FY27. UltraTech is also in the process of acquiring Kesoram Industries’ cement business and is awaiting regulatory clearances.

The Competition Commission of India (CCI) on Friday cleared over Rs 7,000-crore deal, wherein billionaire Kumar Mangalam Birla-promoted UltraTech Cement will acquire a majority stake in India Cements Ltd.

The key approval comes less than two weeks after the regulator had issued a show cause notice to UltraTech seeking clarification on the proposed deal, that will help consolidate its market lead amid rising competition posed by Gautam Adani led Adani group, which is scaling up capacity with acquisitions.

India Cements Foundation

India Cements Limited, a cornerstone of India’s industrial landscape, was established in 1946 by S.N.N. Sankaralinga Iyer and T.S. Narayanaswami, a visionary banker-turned-industrialist. The company’s inaugural cement plant commenced operations in 1949 at Sankarnagar (Thalaiyuthu) in Tamil Nadu, marking a significant milestone in India’s cement industry.

Following India’s independence, India Cements distinguished itself as one of the pioneering Indian enterprises to publicly issue shares, reflecting its commitment to broad-based ownership and transparency. Under Narayanaswami’s leadership, the company diversified beyond cement, venturing into sectors such as aluminum, chemicals, plastics, and shipping, thereby contributing to India’s industrial diversification.

In recognition of T.S. Narayanaswami’s centenary in 2011, India Cements celebrated his legacy, and in 2012, the Indian Postal Department honored him with a commemorative stamp, acknowledging his contributions to the nation’s industrial growth.

India Cements Expansion

Strategic mergers, including those with Trinetra Cement Limited and Trishul Concrete Products Limited, have further solidified India Cements’ position in the market. Today, the company operates eight integrated cement plants across Tamil Nadu, Telangana, Andhra Pradesh, and Rajasthan, along with two grinding units in Tamil Nadu and Maharashtra, underscoring its expansive operational footprint.

However, recent industry challenges, including escalating production costs and intense price competition, have impacted the company’s financial health. N. Srinivasan, Vice Chairman and Managing Director, cited these factors as pivotal in the decision to sell the company, noting that competitors’ ability to undercut prices, coupled with unsuccessful attempts to monetize land assets, necessitated this course of action.

The anticipated acquisition by UltraTech Cement, led by Kumar Mangalam Birla, signifies a transformative phase for India Cements.

UltraTech Cement Stake In India Cements Ltd

On July 28, UltraTech Cement had announced the acquisition of a 32.72 per cent stake in India Cements Ltd (ICL) from promoters and their associates in a Rs 3,954-crore deal, which will expand its footprint in the highly competitive and fast-growing southern cement market.

Besides, Ultratech has also announced a Rs 3,142.35 crore open offer to acquire 26 per cent share of ICL from its shareholders.

The Aditya Birla flagship group firm in a regulatory filing said: “CCI has by its letter dated 20th December, 2024 unconditionally approved the Primary Acquisition and the Open Offer under Section 31(1) of the Competition Act, 2002.”

(With Inputs From PTI)