Raasi Chief Vows To Thwart Ind Cements

B V Raju, chairman, Raasi Cements, yesterday confirmed that India Cements 'seems to have an ambition to take over Raasi' but asserted that he and his family members would fight the move.

"It is a question of Andhra pride," Raju asserted at a hurriedly convened press conference. He added that Raasi was dear not only to Andhra Pradesh but to the country as a whole. "I am a humble, simple and poor man. I have always maintained a low profile. But when it comes to fighting, I shall not be found wanting," the one-time chairman of Cement Corporation of India said.

 

The news conference was convened to deny a report about India Cements move to take over Raasi Cements. Raju described the report as 'false' and 'likely to be motivated'. It contained several factual mistakes, he said.

Raju as well as other directors present at the press meet asserted that a takeover was not possible since the promoters held the majority share. The main promoters, B V Raju and his family members, held 43 percent while other 'friends who will always remain with the promoters' held another seven per cent, Raju said. The financial institutions hold around 25 per cent.

"We had held discussions with the financial institutions some time back, and they have assured us that they will stand by the present management in the event of any adverse situation," Raju said. He also asserted that the family was united and there were no divisions. In an obvious bid to prove the statement, Raju had ensured the presence of his grandsons and granddaughter, who are also on the boards of different Raasi group companies, at the press conference. The chairman of the Raasi group admitted that in 1995, when there was a takeover bid by the Kotharis, he had talked to N Srinivasan, vice-chairman and managing director of India Cements, to buy some shares. "I know Srinivasan for the past 30 years, and had sought some friendly help. The understanding was that we will buy back the shares in due course," Raju asserted.

Asked why they had not re-purchased the shares during the last two years, Raju said that they have been making offers to Srinivasan to buy back the shares and the latter had given a positive response. "Somehow, the deal did not go through," Raju said. He said that as recently as Dec 12, he had a meeting with Srinivasan when he offered to buy back the shares at the rate at which it was sold plus 20 per cent interest from the date of purchase by Srinivasan and a profit margin of 10 per cent.

Srinivasan had told him that he would consult his chairman and get back to him. "Now it is confirmed that they have ambition to take over the company," Raju said.

The issue also figured at the annual general meeting (AGM) of Raasi Cements yesterday afternoon. Raju said that the shareholders expressed full solidarity with the management. No representative of India Cements was present at the AGM, he said.