CHENNAI: India Cements vice chairman and managing director N Srinivasan has assured employees that the takeover by UltraTech Cement will not impact their career. He told them their future is in safe hands and that they need not feel threatened.
“The change (from India Cements to UltraTech) does not mean a change in your career. I have been assured. I spoke to the chairman of Birla Group and he said that they will follow the same policy that we have been doing so far.There will be space for everybody. They will not witch hunt anybody and good workers will be rewarded,” he told the employees in a 13-minute video address on Sunday, minutes after board meeting.
Tracing the history of the 75-year-old cement company, the industry veteran revealed the reason for selling the leading cement manufacturing firm in south India. “Our competitors thought they can crush us with low prices, (while we were facing) with slightly higher cost of production. We had taken all steps to reduce our costs. Meanwhile, we were dependent upon an investor, who was to pick up a lot of our surplus land and therefore, relieve us of many problems. But that did not happen and therefore, we thought of a solution to sell the company,” he said.
Billionaire Kumar Mangalam Birla struck a deal with N Srinivasan and his family to acquire their cement business for Rs 3,954 crore. This added to the 23% stake UltraTech purchased in June. After completion of the acquisition formalities, India Cements will become a subsidiary of UltraTech.
“The change (from India Cements to UltraTech) does not mean a change in your career. I have been assured. I spoke to the chairman of Birla Group and he said that they will follow the same policy that we have been doing so far.There will be space for everybody. They will not witch hunt anybody and good workers will be rewarded,” he told the employees in a 13-minute video address on Sunday, minutes after board meeting.
Tracing the history of the 75-year-old cement company, the industry veteran revealed the reason for selling the leading cement manufacturing firm in south India. “Our competitors thought they can crush us with low prices, (while we were facing) with slightly higher cost of production. We had taken all steps to reduce our costs. Meanwhile, we were dependent upon an investor, who was to pick up a lot of our surplus land and therefore, relieve us of many problems. But that did not happen and therefore, we thought of a solution to sell the company,” he said.
Billionaire Kumar Mangalam Birla struck a deal with N Srinivasan and his family to acquire their cement business for Rs 3,954 crore. This added to the 23% stake UltraTech purchased in June. After completion of the acquisition formalities, India Cements will become a subsidiary of UltraTech.
