The India Cements Ltd said it might sell its stake in Jagati Publications, owned by Y Jagan Mohan Reddy. The company had already sold its stake in Bharati Cements, also owned by the Jagan Mohan-promoted company, and made a profit of about Rs 35 crore.
N Srinivasan, vice-chairman, while addressing shareholders here on Monday, said, “We made a profit by selling our stake in Bharati Cements. In due course, we will also sell our stake in Jagati Publications.”
The company sold its nine per cent in Bharati Cements in 2010.
“It was not that we were interested in publication business, but only on the cement business, but they offered all three as bouquet. Overall, the company invested about Rs 130-135 crore,” a senior company official said.
India Cements had invested about Rs 40 crore in the publication company. The official said the company has a minor stake in the publication house, which owns Sakshi TV and Sakshi newspaper.
In the Competition Commission of India (CCI)’s penalty on India Cements, Srinivasan said, “We do not agree with the penalty and neither did we indulge in any activity which was mentioned in the order.”
It is just an order, it is not a final judgment on the issue, which would not sustain, added Srinivasan.
India Cements is one of the 11 cement companies which were penalised to the tune of about Rs 6,300 crore by CCI over alleged cartelisation.