CALCUTTA, July 10: Prism Cement, the Rajan Raheja group company that commissioned its 2-million-tonne cement plant at Satna last month, has become headless with the sudden exit of its chief executive officer and managing director Harish Malani.

Company sources confirmed that Harish Malani had put in his papers last month. Malani, sources said, was largely responsible for the successful commissioning of the new cement plant in the Satna cluster of Madhya Pradesh.

A former Larsen & Toubro executive, Malani enjoys a good reputation in the industry chiefly because of his long experience.Corporate observers say that he would easily be the favourite of headhunters for the chief executive's slot at major cement companies.

All that Malani said when contacted at his Mumbai residence was that he decided to quit because of some "differences" with the promoters. He refused to elaborate any further. He is still undecided on his plans.

The company, jointly promoted by the Rajan Raheja group, FL Smidth & Co of Denmark and the Industrialisation Fund for Developing Countries, Denmark, is believed to have the largest single kiln cement plant in the country.

It started production of clinker on May 19 and of grade 53 cement in the middle of June 1997.

According to company sources, Prism's cement will be marketed in north Madhya Pradesh and eastern Uttar Pradesh, which are close to the unit. Company officials claim that despite a slight delay, the final project cost will be about Rs 615 crore.

It was originally scheduled for commissioning by end of 1996 at a cost of Rs 575 crore.

The promoters collectively hold 54.85 per cent of the company's equity, out of which FL Smidth and the Industrialisation Fund for Developing Countries together hold about 10 per cent, while the balance is with the Rajan Raheja group.

The reasons cited by company sources for being able to contain costs are placement of orders with main equipment suppliers at "very competitive rates" and in most cases "with no provision for cost escalation". That apart, company officials claim that: "It was able to secure its loans at attractive rates as well as to deploy short-term surpluses effectively, thus achieving substantial savings in financial charges".

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.