Post Takeover, Icl Is King Of South

For India Cements (ICL) vice chairman and managing director N Srinivasan, the acquisition of Raasi Cement puts ICL in a commanding position in the southern region with a market share of 35 per cent.

The next player is way down with just a 10 per cent market share, say top sources in the company.

Demand in the south for cement is increasing by nine per cent per annum.

ICL will now have a capacity of 7.5 million tonnes per annum, making it the second largest producer after ACC. Its recent acquisitions include Cement Corporation of Indias (CCI) Yerraguntla unit and Visaka Cement Industries.

 

More importantly, the Raasi takeover will help ICL access the large limestone reserves of the former.

The Raasi plant is said to be about a decade old, when cement plants normally have a life of 35 to 40 years.

With the sale of B V Rajus stake in Raasi, ICLs holding in the company goes up to 53 per cent and marks the completion of the sale of the promoters share in Raasi started by N K P Raju and followed by the Andhra Pradesh Industrial Development Corporation.

The next two years will be a consolidation phase, company sources say.

ICL also believes that the excess capacity in the industry will be adjusted once the economy starts picking up and does not think a glut will ensue.