Calcutta, Jan. 30: With Holcim becoming the largest shareholder in Gujarat Ambuja Cement Ltd (GACL), it could be time for Harshvardhan Neotia to step down as managing director of Ambuja Cement Eastern Ltd (ACEL).

ACEL is one of the leading producers of cement in Bengal with a 16 per cent market share. Holcim and GACL hold 97 per cent in ACEL through Ambuja Cement India Ltd (ACIL).

Holcim holds 67 per cent in ACIL , while the rest is with GACL. Following the acquisition of a 14.78 per cent stake in GACL by Holcim and a subsequent open offer for 20 per cent, the Swiss major’s stake in ACEL would go up further.

Moreover, today’s development also marked the exit of Neotia from the GACL board where he was a non-executive director.

When Holcim acquired a majority stake in ACEL in January last year, Neotia continued as the managing director. With today’s turn of events, he may not do so for long. When contacted, Neotia declined to comment.

ACEL, which has a unit in Sankrail now, is setting up another one-million-tonne unit at Farakka. Its board comprises three members each from GACL and Holcim along with three other independent directors.

Anil Singhvi, who will become the managing director of GACL, is on the board of ACEL with Suresh Neotia, Harshvardhan’s uncle, who is the chairman.

The exit of Neotia, who is also a well-known real estate developer, is unlikely to affect the company’s expansion plan.

Cement industry sources said Holcim might consider merging the company once it restructures its Indian cement business that now constitutes both ACC and GACL.