India Cements has sold its entire equity stake in Industrial Chemicals and Monomers Ltd (ICML) for ₹98 crore. The transaction, completed through a share transfer to Mirai Sensing Private Ltd, was disclosed via a regulatory filing to the Bombay Stock Exchange, confirming that ICML will no longer be a subsidiary of India Cements.
The deal represents a strategic realignment by one of India’s oldest cement manufacturers, as it looks to streamline operations and focus on its core competencies in cement production and allied infrastructure. ICML, incorporated in Tirunelveli, Tamil Nadu, had earlier suspended its operations. Company documents from the FY2024 annual report indicated that the unit had become commercially unviable due to operational constraints and persistent financial losses. While India Cements did not elaborate on the specific terms of the buyer’s plans post-acquisition, industry insiders believe that the new promoter group may explore revival opportunities, potentially repositioning the unit for use in future manufacturing or tech-enabled operations. For now, however, the transaction marks a full financial exit from a segment that had long been a drag on the company’s balance sheet.
The exit from ICML is part of a broader restructuring trend in corporate India, where industrial groups are shedding loss-making or low-return ventures to improve overall capital efficiency. For India Cements, this divestment is expected to free up resources and reduce managerial overheads associated with monitoring a dormant business. Analysts point out that in a competitive and margin-sensitive industry like cement, agility and financial focus are critical to long-term sustainability. The decision to part ways with ICML is likely to be welcomed by investors and market observers as a rational move that demonstrates the company’s intent to concentrate on scalable, high-return operations.
ICML’s closure in previous years was a reflection of deeper systemic issues faced by small and mid-sized chemical manufacturers, especially those located in semi-urban industrial belts like Tirunelveli. Rising input costs, outdated technology, and lack of scale contributed to making the business model unsustainable. In such cases, the cost of revival often outweighs the benefit, particularly for parent companies with larger strategic priorities. India Cements has, in recent years, focused on strengthening its cement and construction materials portfolio, while also navigating industry-wide challenges such as rising fuel costs, environmental compliance, and fluctuating demand. The company has indicated ongoing interest in modernising its production units and exploring new markets in south and central India.
With the ICML transaction now completed, India Cements joins a growing list of companies that are actively pursuing divestments as a route to cleaner balance sheets. In an increasingly ESG-conscious investment environment, there is also pressure on listed companies to reduce operational redundancies and align business portfolios with sustainable and value-driven goals. The buyer, Mirai Sensing Private Ltd, has not publicly disclosed its vision for ICML’s future operations. However, given the increasing demand for specialised chemical inputs in sectors such as renewable energy, semiconductors, and electric mobility, industry watchers suggest that the asset could potentially be retooled for a more tech-forward use case.
Regardless of what lies ahead for ICML, the exit by India Cements reflects a sharpened focus on operational efficiency, reduced exposure to unviable verticals, and a more disciplined capital allocation strategy.
India Cements Sells ICML Stake for Rs 98 Crore
