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birla
UltraTech Cement On The Prowl, Eyes Heidelberg Cement
What goes out seems to return to the same place. Well, how else could one view the unfolding scenario. Reports suggest that Aditya Birla Group-owned UltraTech Cement is in advanced talks to acquire Heidelberg Cement India. Heidelberg Cement India is the subsidiary of HeidelbergCement Group, Germany. It entered India in 2006 with the acquisition of erstwhile Mysore Cement, Cochin Cement and a JV with Indorama Cement. The company has plants at Damoh (MP), Jhansi (UP), and Ammasandra (Karnataka). If this acquisition happens, UltraTech may get Zuari Cements as well, which is a part of the Heidelberg Group. In such an eventuality, the Sitapuram plant of Zuari will also come under UltraTech. The Sitapuram plant was once with The India Cements (ICL). The India Cements got the Sitapuram plant as a bonus when it acquired Raasi Cement many years ago. Subsequently, India Cements sold the Sitapuram plant to Zuari to raise funds. The Parli grinding unit of India Cements, it may be recalled, was acquired by UltraTech. Since UltraTech has taken over India Cements, the Parli grinding unit has technically returned to its original place (since India Cements has now become a subsidiary of UltraTech). Well, the world is small after all.  And, the world is indeed round!
india cement enfiled
Money Or Succession Issue: The Compulsion Of Selling Family-Run Business
[the_ad id=”14101″] What’s in a name? What’s in a brand? All these can just disappear. As time goes by, all these can fall by the wayside. How else can one view the happenings in the corporate world of Tamil Nadu? In the early 90s, one of the brightest jewels of the Chennai industrial world — Enfield – changed hands. Promoted by S Viswanathan and his family, Bullet-maker Enfield was sold to the Eicher group. Viswanathan & his ilk had to give up Enfield due to a combination of issues including scalability. Today, the Eicher group has taken Enfield to a new height globally. A few days ago, another big name in Tamil Nadu – The India Cements – was sold to the Aditya Birla Group UltraTech Cement.  That sale of India Cements by N Srinivasan and his family reflects the challenges of a family-owned business. There is a similarity between Enfield and India Cements in their sale. The promoters – either by choice or circumstances — had chosen to quit. What is of significance is the fact that both have changed hands due to a sale process. This is in contrast to management changes that are happening elsewhere in the Indian corporate world. There are many such these days and happen due to corporate insolvency resolution actions.  The change of guard both at Enfield and India Cements pose new challenges to family-owned businesses in Tamil Nadu. Change is the sign of not just development but also maturity, it appears.
damani NSrinivasan Birla
India Cements: A Win-Win Deal For Srinivasan, Birlas And Damani
[the_ad id=”14101″] He knows inside out of cement. He breathes cement, and is passionate about his organisation. He is also acutely aware of the fast-changing dynamics in the cement industry. All along, he has run the cement business in a co-existing system. Initially, he worked with the Chemplast group as a co-promoter. Subsequently, he carried on with the Radhakishan Damani of DMart fame as passive investors. With the Damanis selling their stake to Aditya Birla Group company UltraTech Cement, N Srinivasan has to co-exist with the Birlas now. Is there a definite method to the latest twist? The way things are panning out, it appears a win-win for all the three players. Damani has cashed out happily. Birlas have gained more than a toe-hold into The India Cements, which has a legacy going back to pre-Independence days. Birlas have, for now at least, chosen to stop at the level of financial investor. Given the tall stature of Srinivasan and also considering his age, Birlas have taken a wise course. For Srinivasan, the situation is not new and yet new in a way. This time, he has to co-exist with a financial investor who is also a cement maker.  For stakeholders across the canvas, this could be a welcome development. After all, Birlas have a rich background in terms of culture and values. That bodes well for India Cements. What lends credence to the emerging new setting was the unreported informal confabulations at India Cements a few days prior to the sale of stake by Damani in the open market to UltraTech people. The current arrangement seems perfect given the fact that both Srinivasan’s daughter and granddaughter are passionate about driving the cricket franchise Chennai Super Kings. Interestingly, for Birlas there is a Tamil Nadu connection, Kumar Mangalam Birla’s mother Rajashree was born in Madurai. She went to St Joseph’s Convent School and Fatima College. After her marriage to Aditya Birla she moved to Kolkata.
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Established Branded Jewellers Unfazed About Newbie On The Block
The news that the Aditya Birla Group (ABG) is planning to move into selling branded jewellery has, expectedly, not elicited any reaction from the Tatas which got into the market first with the Tanishq brand. Other players in the jewellery retail business, as well as the umbrella All-India Gem and Jewellery Domestic Council (GJC) which is the industry’s national apex body, are unfazed, too. While ABG’s decision marks a departure from its traditional areas of strength, textiles and cement, it has not even made ripples in the market. Besides Tanishq, the branded jewellery sector already has major players like Reliance, Kalyan, PC and SHUBH. With ABG’s entry, for which the group has earmarked almost Rs5,000 crore, there will be more big-format retail stores for jewellery retail including its in-house brands. “One more joins the stream,” says former GJC chairman Dr C Vinod Hayagriv, who is managing director of C Krishniah Chetty headquartered in Bengaluru. “The more the merrier!” But will it shake up the market? “Doubt it,” says his successor Ashish Pethe, partner in the Mumbai-based Waman Hari Pethe Jewellers. An independent industry report forecasts that future growth in the sector will be led by the development of such large brands.
Paints
Grasim Dons War Paint With Rs 5000 Crore Budget, As Asian Paints Looks Outside The Segment
For decades, Asian Paints has led the pack in the Rs 60,000-crore plus paint industry. But with Grasim Industries, part of the Aditya Birla Group setting its sights higher, the competition will intensify.  Grasim has chalked up a Rs 5000-crore investment plan in the decorative segment which is growing at 11% per annum. This announcement by Grasim which has heft and gravitas to disrupt the market made competitors like Asian Paints, Berger Paints, Kansai Nerolac and Akzo Nobel sit up and take notice. Grasim’s foray into the segment will be backed by their existing leadership in cement, white cement and putty business. Paint is a high growth market and the pie is large enough for everyone to share, industry observers say. There is no denying that leaders like Asian Paints will not find the going easy anymore. Sajjan Jindal group’s JSW has also entered the space, so cut-throat competition is bound to see ad spends growing with margins coming under pressure. In fact, Asian Paints read the writing on the wall and made public that it was looking beyond paints.  Recently, the company picked up 49% stake in White Teak Company selling lighting and fans and will increase its stake based on the response. Time will tell which company remains in the black and which moves into the red.

TRENDS & VIEWS

Editor’s Note: Short Post Is Here To Stay…

Time, they say, flies—and how true that is. Here we are celebrating our 5th Anniversary. Five years ago, when Covid-19 was wreaking havoc across the globe, I took a leap of faith and launched Short Post, India’s first website for Authentic Gossip. That was on January 31, 2021. I was convinced there was a clear gap in the market for gossip that was credible, sharp, and impactful—especially if told in just 250 words.

In this, I was fortunate. Scores of senior editors across diverse verticals bought into the idea and, in the process, gave wings to my dream. Quite honestly, Short Post could not have crossed these milestones without the unflinching support of its contributing editors. Like all start-ups, we have seen our share of ups and downs, but these editors have stood by us like a rock. I take this opportunity to doff my hat to them.

Thanks to their commitment, we have published close to 5,000 stories spanning politics, business, entertainment, and sports. I say this with pride: we made our mark as people who matter read us. “Small packs, big impact” truly captures the essence of Short Post.

We all know that Covid-19 has reset businesses worldwide, and the media sector is no exception. In the post-Covid era, investors have become more cautious and selective—and advertisers too. To compound matters, the entry of AI has disrupted the media landscape in equal measure. So far, we have managed to hold our ground, hopeful that some angel investors will take a shine to us.

What gives me confidence is this: AI cannot smell news—especially the gossipy kind. In other words, AI cannot churn out Short Post-type stories, no matter the prompt. That puts us in a safe zone. As someone rightly said, “AI is a co-pilot, not a pilot.”