India Cements CEO N Srinivasan Resigns After Rs 7000 Cr UltraTech Deal

N Srinivasan resigned as the CEO of India Cements on Wednesday after the Competition Commission of India (CCI) approved a Rs 7,000-crore deal for UltraTech Cement, led by Kumar Mangalam Birla, to acquire a majority stake in the company. 

Following the completion of the deal, India Cements announced that Srinivasan also stepped down as Vice Chairman and Managing Director, as the existing promoters no longer control the company.

Additionally, his daughter Rupa Gurunath, wife Chitra Srinivasan, and V M Mohan have resigned from the company's board, as stated in a regulatory filing.

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In a regulatory filing, India Cements, stated, "The erstwhile promoters and members of the promoter group, namely Mr. N. Srinivasan, Mrs. Chitra Srinivasan, Mrs. Rupa Gurunath, EVVS Finance & Investments Private Limited, Mr. S.K. Asokh Baalaje, Financial Service Trust, Security Services Trust and Chennai Super Kings Cricket Limited (collectively, 'Erstwhile Promoters'), who no longer hold any equity shares of the Company, cease to be promoters/members of the promoter group of the company."

In a resignation letter, N Srinivasan, said, "Consequent to the divestment of my entire shareholdings in The India Cements Limited ('ICL'), as one of the 'Promoters' of ICL with UltraTech Cement Limited ('Acquirer') and in terms of the Share Purchase Agreement dated 28.07.2024 entered with the Acquirer, I, N. Srinivasan (DIN: 00116726), hereby tender my resignation as Vice Chairman & Managing Director, Director and Chief Executive Officer (KMP) of The India Cements Limited with immediate effect. I also cease to be the Promoter of The India Cements Limited with immediate effect." 

Through this deal, UltraTech Cement is buying certain manufacturing facilities and assets from India Cements to improve efficiency and expand its market reach.

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N Srinivasan resigned following the completion of the deal, which brought changes to the company's structure. He played a key role in leading India Cements through challenges and growth.

The company has not yet named a new CEO or MD. Meanwhile, an executive committee will manage operations to ensure a smooth transition.

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