The Hindu Business Line : Prophetic

IN October 2004, Mr Anil Singhvi, the then Executive Director (Finance) of Gujarat Ambuja Cements, spoke extensively to Business Line about the group's business strategy, especially its view on ACC and the bids by MNCs. He is now the Managing Director of Gujarat Ambuja Cements under the auspices of Holcim. Here's what he had told Business Line in that interview on Gujarat Ambuja's approach to possible bids by MNCs.

You have had a strategic stake in ACC for close to five years. What is the idea behind retaining your stake at 14.4 per cent? Is ACC still not vulnerable to a hostile bid by multinational companies?

Yes. Even Gujarat Ambuja could be vulnerable to a hostile bid. Why not? The Sekhsarias' holding in the company is only 24 per cent. Our holding of 14.4 per cent is not by design. It so happened that the Tatas had that stake and we bought their holding. Nothing more than that.

If an MNC were to make a bid, would you be willing to sell your stake?

If we get a good price and value for our money, we will take it and sell. Why not? If somebody pays Rs 1,000 a share for Ambuja, I would sell Ambuja also. Have I given that reply very clearly? (Repeats willingness to sell Ambuja). Business is run with passion and not emotion. Most businesses in India are unfortunately run with emotion; they are left with just emotion and no business.

Does this also represent the views of the promoters?

I don't think I would have opened my mouth if I did not know the views of the promoters: that is, if you get a good price, say Rs 1,000, which is three times at which the stock trades today, then sell. Why not?

In early 2005, Gujarat Ambuja entered into a strategic alliance with Holcim, which enabled the latter to acquire control of Ambuja Cement Eastern and a stake of close to 35 per cent in ACC. Now it has taken the driver's seat at Gujarat Ambuja Cements.

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