Adani’s Takeover of Orient Cement Sparks Job Insecurity and Protests in Telangana
The Adani Group’s October 2024 acquisition of Orient Cement Company (OCC) has sparked significant concerns among the cement manufacturer’s employees regarding their job security. OCC, originally established by the CK Birla Group in Devapur village, Telangana, 42 years ago, was bought by Adani Cement for an equity value ofINR8,100 crore. The acquisition is expected to be completed within the next three to four months, after which the management will transition to Adani Cement.
Employees, numbering 2,358 in total, including permanent, contract, management, and loading staff, are anxious about potential job cuts under the new management. Many fear that the takeover will lead to workforce reductions and that Adani Cement may not honor the promises made by the previous management. Ch Tirupathi Reddy, the working president of the recognized trade union at OCC, emphasized that while company acquisitions are a common business practice, the new management must fulfill past commitments. If not, employees are prepared to protest. Reddy also highlighted previous promises made by the current management, including the establishment of a fourth plant and the creation of 4,000 local job opportunities for those displaced by land acquisition.
Additionally, the company had pledged to improve basic infrastructure in the surrounding villages, such as healthcare, education, and roads. These promises, employees claim, have not been fully honored, with several court orders remaining unfulfilled. Ramulu Naik, the former MLC and president of the OCC permanent workers union, announced plans for a day-long sit-in protest in front of the company if the existing management does not begin construction of the fourth unit in Devapur, as promised. Employees’ concerns about their future remain a pressing issue, especially with the upcoming change in management.
The Orient Cement plant, originally commissioned in 1982 with a daily capacity of 2,000 metric tonnes, underwent significant expansions over the years. By 2007, the plant’s daily capacity had increased to 8,000 metric tonnes. In 2023, the Telangana government laid the foundation for the fourth unit, estimated to cost INR 2,000 crore. As the transition to Adani Cement approaches, employees remain uncertain about the future and are increasingly vocal about ensuring that their rights and promises made to the local community are not overlooked.
