India: Dalmia Cement plunders executives from Shree

India: Dalmia Cement plunders executives from Shree
13 December 2013

Mahendra Singhi has joined the Dalmia group has its new managing director from rival Shree Cement where he had spent 19 years, with his last position being executive director. His aim will be to consolidate cement operations and build efficiencies while working with private equity investor KKR.

The US-based fund KKR, which invested US$125m in the cement company in 2010, helped Dalmia implement best practices and integrate acquisitions. KKR has already standardised management practices across Dalmia sales teams, introduced new sales processes and develop performance tracking tools. These efforts have resulted in Dalmia growing its domestic market share significantly – moving from seven per cent in early 2010 to over 10 per cent in mid-2012 in south India. Dalmia Bharat reported a 27 per cent rise in compounded annual growth rate at INR27.5bn (US$442.5m) in the last two years. KKR was also able to help Dalmia improve service orders.

"Our growth is based on our belief that promoters and professionals can partner together to add a human touch and improve the way businesses are run," says Puneet Dalmia, the third generation businessman from the Dalmia family. "We have always been professionally run, with regional CEOs running our cement business, and are now consolidating this under one person to lead the entire cement business."

Now KKR is looking to professionalise top management at Dalmia Cement and Mahendra Singhi was seen as the best candidate to head up operations having spent spent 19 years at Shree Cement, with his last position being executive director. The move to bring in a new MD and professionalise the management was also part of a long-term strategy. "Puneet had always felt it important to bring in an experienced CEO within three years of our investment," Sanjay Nayar, board member and CEO, KKR India.

Dalmia Cement, south India's second-largest cement maker, will ramp up its cement business by expanding 5Mta in the next year to reach a 22Mta capacity by building plants in Karnataka, West Bengal and Assam.

Published under Cement News

Tagged Under: India Dalmia Cement Shree Cement