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India Cements, which owns Chennai Super Kings, plans to de-merge the BCCI-IPL franchise into a separate subsidiary.
CSK is one of the eight teams under the Indian Premier League conceived by the Board of Control for Cricket in India.
India Cements has informed the BSE that at the board meeting on September 26 it will consider de-merging the CSK division into a wholly-owned subsidiary. Company officials declined to comment on the move. However, according to sources in the know, hiving off the franchise as a separate entity opens up opportunities for the company to develop CSK, by attracting investments from private equity and other sources, or even monetise the asset. “Why will anyone interested in IPL invest in the parent cement company,” asked the source. Most other corporate owners hold the franchise separately.
Revenue contribution India Cements officials have on earlier occasions disclosed that CSK contributed about ₹166 crore in revenue in 2013-14. India Cements, with a revenue of ₹4,500 crore, does not disclose the contribution of CSK separately as it is less than 10 per cent of its income.
India Cements bagged the rights to operate the CSK franchise for 10 years in 2008 when it bid $91 million. The IPL concluded its seventh season earlier this year. CSK were IPL champions in 2010 and 2011.
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