Will One-Fifth Shareholder Damani Wield Direct Influence Over India Cements’ Promoter Srinivasan?

What does holding one-fifth stake in a company mean to the strategic investor? Wielding major influence on the running of the enterprise? Well, it depends on variable factors. Some investors are just happy to park their funds and, earn rich dividends as income. Others, however, seek a more active role in the running of operational affairs. More than anything else, the nature of the enterprise itself defines the role of a one-fifth shareholder. An equity stake of 21.28%, as on September 30, 2021, made DMart’s founder Radhakishan Damani a significant player in The India Cements business. The promoter group – N Srinivasan family — holds a 28.42% stake in the company. Operating a cement enterprise is no kids’ play. Given the very nature of the operating environment, the cement business makes for a heady cocktail which needs a customised management to run the enterprise. Also, the rough and tumble playground requires a combination of native intelligence and deep marketing mind as sine qua non to safely and securely navigate the playing fields. That is a catch that the Damanis appear to fully understand as also, India Cement’s illustrious history. The indefatigable never-say-die spirit of N Srinivasan at the helm with near-term excitements aplenty will make for a fascinating long-haul story! One thing is for sure, however. It is only headed for more interesting times.