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India Cements to demerge IPL team to wholly-owned subsidiary
MUMBAI: N Srinivasan-promoted India Cements is going to demerge its Indian Premier League (IPL) franchise Chennai Super Kings (CSK) to a wholly-owned subsidiary.
The board of India Cements will consider the proposal on 26 September. Currently, CSK operates as a division of India Cements.
The IPL franchise has helped India Cements to expand outside South India by bringing it more visibility and brand recall. The association with a popular franchise like CSK and the presence of popular faces like MS Dhoni and Suresh Raina allowed the company to foray into newer markets like Madhya Pradesh, Rajasthan and Gujarat.
However, the IPL also came with its share of controversies, the biggest one being the arrest of CSK official and Srinivasan’s son-in-law Gurunath Meiyappan on charges of betting. The arrest of Meiyappan forced Srinivasan to step aside as the president of the BCCI.
CSK had made revenues of Rs 166 crore (Rs 1.66 billion) in FY14, up from Rs 136 crore (Rs 1.36 billion) a year ago. India Cements’ income from operations in FY14 was Rs 4,496.81 crore (Rs 44.96 billion) compared to Rs 4597.03 crore (Rs 45.97 billion) it made in the earlier year.
India Cements had bagged the Chennai franchise for $91 million. It was the fourth most expensive team after the Mumbai, Bangalore and Hyderabad franchises.
Captained by Dhoni, CSK has been extremely successful bagging the IPL title twice while ending as runners-up twice. Incidentally, Dhoni, who is also the Indian cricket team captain, is the vice-president of India Cements.