Adani’s multi-billion takeover of Orient Cement in Telangana sparks job fears and employee protests
OCC, founded by the CK Birla Group in Devapur village 42 years ago, was acquired by Adani Cement for an equity value of Rs. 8,100 crore in October. The transaction is set to be completed within the next three to four months, after which the management of the cement company will transition to Adani Cement.
Mancherial: The Adani Group’s October 2024 buyout of CK Birla Group’s Orient Cement Company (OCC) in Devapur of Kasipet mandal here has triggered job security worries among the company’s employees.
OCC, established by the CK Birla Group at Devapur village 42 years ago, was taken over by Adani Cement at an equity value of Rs.8,100 crore in October. The transaction will be completed in three to four months. The management of the cement manufacturer will be soon shifted to Adani Cement.
However, employees have their own concerns. At present, the company has 2,358 employees including permanent, contract, management and loading staff. The employees fear that the new management will slash the workforce. They also fear that the new management might not fulfill promises made by the existing one. They are planning to launch protests soon.
“The taking over of one company by another is part and parcel of business. But the management of the cement company must strive to fulfil its promises made in the past. Else, we will begin a stir if injustice is done to the employees,” Ch Tirupathi Reddy, working president of the recognized trade union of the OCC said.
The existing management had promised to establish a fourth unit and assured to provide 4,000 opportunities to locals displaced by acquisition of lands affected by air pollution. It also promised to create basic amenities like education facilities, healthcare infrastructure, roads, etc., to the villagers at the time of founding the company. It has allegedly not honoured orders of the High Court with regard to these assurances.
Meanwhile, former MLC and OCC permanent workers union president Ramulu Naik announced that he would stage a day-long sit-in in front of the company if the present management did not set up the fourth unit in Devapur on Tuesday. He stated that the employees were insecure about their future.
2,000 metric tonnes of cement per day
The CK Birla Group began work on the plant in 1979 and commissioned it in September 1982 with an installed capacity of 2,000 metric tonnes of cement per day. It came forward to establish the plant at this village, following availability of raw material, limestone. It then founded second and third units in 1996 and 2007, while daily production was enhanced to 8,000 metric tonnes of cement.
The then Municipal Administration and Urban Development minister KT Rama Rao had laid the foundation stone for the fourth unit in 2023. The estimated cost of expansion was Rs.2,000 crore.
However, the management, for reasons best known to it, have reportedly not made much progress after that.
