The India Cements Ltd. (ICL) has decided to hive off Chennai Super Kings (CSK), a cricket team owned by it and run as a division of the company, into a wholly-owned subsidiary. We propose to de-merge CSK division into a wholly-owned subsidiary of our company,’’ the cement major said in a filing to the BSE on Tuesday.
The de-merger proposal will be taken up for the consideration of the board at its ensuing meeting on September 26. Chennai Super Kings has given The India Cements a new brand image, and a pan-India corporate identity. The iconic stature of M.S. Dhoni, the skipper of Chennai Super Kings, has helped the company in a major way in its forays into news markets such as Rajasthan and Gujarat. Thanks to Dhoni-led Chennai Super Kings, The India Cements has become some sort of a household name across the country.
The India Cements, it may be recalled, had successfully bid for the Chennai franchise of the IPL team in 2008. The company has to pay the BCCI a total consideration of $ 91 million to operate the franchise. This money is payable over a period of 10 years to BCCI in equal instalments, commencing 2008. Chennai Super Kings fetched The India Cements revenue of Rs.166 crore in 2013-14. The franchise gets revenue shared by BCCI-IPL from the sale of media rights and sponsorship income. Besides, local revenue like gate collections, team sponsors, uniform sponsors etc. also accrue to the company.
CSK has sponsors such Aircel, Gulf Oil, GST global et al. In Chennai, Hotel Park Sheraton and Towers is the hospitality partner. Chennai Super Kings won IPL trophies in 2010 and 2011. It also won the IPL Champion League in 2010.