B V Raju May Invest In Power

With over Rs 160 crore cash in his hands, B V Raju is planning a major diversification. At the moment, he is eyeing at the power sector for possible investment.

Apart from the Raasi Cement Ltd, which now goes to India Cements Ltd, Raju has half a dozen other ventures, though they are not as successful as Raasi. In the cement sector itself, he still holds management of Sri Vishnu Cements Ltd.

His other ventures include Raasi Ceramics Ltd, Raasi Refractories Ltd, Raasi Leasings Ltd and Raasi Finance and Investment Ltd.

These companies apart, Raju is known to hold vast real estate in the City and other parts of the State.

Raju may now go ahead all by himself with the new cement plant he has been planning in Anantapur with a capacity of 6 lakh tonnes per annum and at a cost of Rs 250 crore.

He had mooted the proposal as part of Raasi cement expansion but now that Raasi is out of his hands, he may pursue the new project on his own.

Meanwhile, Raju lamented that the new takeover code of Sebi do not give adequate protection to the technocrat promoter who cannot have a large stake in the companies.

He has suggested a second look at the regulations to protect technocrats from such take-overs as the country needs a number of technocrat-entrepreneurs to start industries.

In a three-page statement issued from Mumbai explaining the circumstances under which he has sold his and his associates entire stake in the Raasi Cement Ltd to India Cements Ltd, Raju demanded that the government should immediately introduce a legislation ensuring buy back of shares.

Raju said that despite holding 33 % of shares directly in Raasi Cement and another 10% of his associates, he would require Rs 100 crore for a counter bid to acquire a minimum of 51% Being a professional, he could not create an asset base for mobilising such huge amount.

Recalling his contribution to the cement industry in the country, Raju said that as chairman of Cement Corporation of India, he has set up three factories in Andhra Pradesh- at Adilabad, Tandur and Yerraguntla.

He had started Raasi Cement Ltd after retirement, and today, the Raasi group employs 10,000 workers and contributes Rs 70-80 crore to the state exchequer and Rs 90-Rs 100 crore to the central exchequer.

He said he had tried to work out a strategic understanding with some other industrial groups to avert the take over by India Cements Ltd but even though some of the offers were attractive, keeping the overall interest of all concerned, he felt the offer of India Cements was the best one.