NEW DELHI: UltraTech Cement, India’s main cement producer and a flagship firm of the Aditya Birla Group, has introduced a Rs 3,954 crore deal to accumulate a controlling stake in India Cements. This strategic transfer is ready to bolster UltraTech’s presence within the extremely aggressive southern states of India, significantly Tamil Nadu.
The board of UltraTech Cement accredited the acquisition of a 32.72% stake in India Cements from its promoters and their associates at a worth of 390 rupees per share, amounting to Rs 39.54 billion ($472.38 million).This buy is along with the 23% stake UltraTech acquired in June. Following this transaction, UltraTech’s whole stake in India Cements will exceed 55%, necessitating an open provide to purchase further shares from public shareholders on the identical worth, as per regulatory necessities.
The acquisition is a part of UltraTech’s broader technique to dominate the Indian cement market, which is projected to just about double in worth to $49 billion by 2029, pushed by vital infrastructure investments below Prime Minister Narendra Modi’s authorities.
“This deal will assist UltraTech Cement meet its manufacturing goal of 183.5 million metric tons by the fiscal 12 months ending March 2027,” stated Ashutosh Murarka, a analysis analyst at Mumbai-based Alternative Broking. “We anticipate the deal momentum in India’s south to proceed,” he added.
UltraTech’s acquisition contains 28.42% from promoters Srinivasan N, Chitra Srinivasan, Rupa Gurunath, and SK Asokh Baalaje, together with 4.30% from Sri Saradha Logistics. The whole deal, as soon as accomplished and regulatory approvals obtained, will considerably broaden UltraTech’s footprint in southern India.
The acquisition follows UltraTech’s Rs 1,900 crore buy of a 23% stake in India Cements in June. The newest transfer goals to leverage operational efficiencies by buying ready-to-use belongings, decreasing the time to market in comparison with greenfield tasks.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, expressed pleasure in regards to the acquisition, highlighting its potential to reinforce UltraTech’s service to southern markets and speed up the corporate’s progress in direction of a 200 million tonnes every year (MTPA) capability.
“The India Cements alternative is an thrilling one, because it allows UltraTech to serve the Southern markets extra successfully and accelerates the trail to over 200 MTPA capability,” stated Birla. “These investments have additionally facilitated India’s nationwide infrastructure improve, powering our nation’s rising want for housing, roads, and different important infrastructure.”
With this acquisition, UltraTech solidifies its management within the Indian cement business, the place it already boasts an put in capability of 154.86 MTPA of gray cement. UltraTech’s strategic investments, each natural and inorganic, proceed to propel India towards turning into a world constructing options champion.
In the meantime, the Adani Group, one other main participant within the Indian cement business, can be on an enlargement spree. The group not too long ago introduced the acquisition of Penna Cement for Rs 10,422 crore, including 14 MTPA to its capability, aiming for a complete of 140 MTPA by FY28.
UltraTech’s acquisition of India Cements is anticipated to be accomplished inside six months, pending mandatory regulatory approvals. This transfer marks a major step in UltraTech’s ongoing efforts to broaden its market share and operational capabilities in India’s quickly rising cement business.
(With inputs from companies)
The board of UltraTech Cement accredited the acquisition of a 32.72% stake in India Cements from its promoters and their associates at a worth of 390 rupees per share, amounting to Rs 39.54 billion ($472.38 million).This buy is along with the 23% stake UltraTech acquired in June. Following this transaction, UltraTech’s whole stake in India Cements will exceed 55%, necessitating an open provide to purchase further shares from public shareholders on the identical worth, as per regulatory necessities.
The acquisition is a part of UltraTech’s broader technique to dominate the Indian cement market, which is projected to just about double in worth to $49 billion by 2029, pushed by vital infrastructure investments below Prime Minister Narendra Modi’s authorities.
“This deal will assist UltraTech Cement meet its manufacturing goal of 183.5 million metric tons by the fiscal 12 months ending March 2027,” stated Ashutosh Murarka, a analysis analyst at Mumbai-based Alternative Broking. “We anticipate the deal momentum in India’s south to proceed,” he added.
UltraTech’s acquisition contains 28.42% from promoters Srinivasan N, Chitra Srinivasan, Rupa Gurunath, and SK Asokh Baalaje, together with 4.30% from Sri Saradha Logistics. The whole deal, as soon as accomplished and regulatory approvals obtained, will considerably broaden UltraTech’s footprint in southern India.
The acquisition follows UltraTech’s Rs 1,900 crore buy of a 23% stake in India Cements in June. The newest transfer goals to leverage operational efficiencies by buying ready-to-use belongings, decreasing the time to market in comparison with greenfield tasks.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, expressed pleasure in regards to the acquisition, highlighting its potential to reinforce UltraTech’s service to southern markets and speed up the corporate’s progress in direction of a 200 million tonnes every year (MTPA) capability.
“The India Cements alternative is an thrilling one, because it allows UltraTech to serve the Southern markets extra successfully and accelerates the trail to over 200 MTPA capability,” stated Birla. “These investments have additionally facilitated India’s nationwide infrastructure improve, powering our nation’s rising want for housing, roads, and different important infrastructure.”
With this acquisition, UltraTech solidifies its management within the Indian cement business, the place it already boasts an put in capability of 154.86 MTPA of gray cement. UltraTech’s strategic investments, each natural and inorganic, proceed to propel India towards turning into a world constructing options champion.
In the meantime, the Adani Group, one other main participant within the Indian cement business, can be on an enlargement spree. The group not too long ago introduced the acquisition of Penna Cement for Rs 10,422 crore, including 14 MTPA to its capability, aiming for a complete of 140 MTPA by FY28.
UltraTech’s acquisition of India Cements is anticipated to be accomplished inside six months, pending mandatory regulatory approvals. This transfer marks a major step in UltraTech’s ongoing efforts to broaden its market share and operational capabilities in India’s quickly rising cement business.
(With inputs from companies)
