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 acquire a controlling stake in India Cements. This strategic transfer is about to bolster UltraTech’s presence in the extremely aggressive southern states of India, significantly Tamil Nadu.
The board of UltraTech Cement authorised 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 in addition to the 23% stake UltraTech acquired in June. Following this transaction, UltraTech’s whole stake in India Cements will exceed 55%, necessitating an open supply 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 practically double in worth to $49 billion by 2029, pushed by important infrastructure investments below Prime Minister Narendra Modi’s authorities.
“This deal will help UltraTech Cement meet its production target of 183.5 million metric tons by the fiscal year ending March 2027,” mentioned Ashutosh Murarka, a analysis analyst at Mumbai-based Choice Broking. “We expect the deal momentum in India’s south to continue,” he added.
UltraTech’s acquisition consists of 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 develop 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 property, decreasing the time to market in contrast to greenfield initiatives.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, expressed pleasure concerning the acquisition, highlighting its potential to improve 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 opportunity is an exciting one, as it enables UltraTech to serve the Southern markets more effectively and accelerates the path to over 200 MTPA capacity,” mentioned Birla. “These investments have also facilitated India’s nationwide infrastructure upgrade, powering our country’s growing need for housing, roads, and other vital infrastructure.”
With this acquisition, UltraTech solidifies its management in 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 changing into a world constructing options champion.
Meanwhile, the Adani Group, one other main participant in the Indian cement business, can be on an enlargement spree. The group lately 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 needed regulatory approvals. This transfer marks a big step in UltraTech’s ongoing efforts to develop its market share and operational capabilities in India’s quickly rising cement business.
(With inputs from companies)
The board of UltraTech Cement authorised 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 in addition to the 23% stake UltraTech acquired in June. Following this transaction, UltraTech’s whole stake in India Cements will exceed 55%, necessitating an open supply 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 practically double in worth to $49 billion by 2029, pushed by important infrastructure investments below Prime Minister Narendra Modi’s authorities.
“This deal will help UltraTech Cement meet its production target of 183.5 million metric tons by the fiscal year ending March 2027,” mentioned Ashutosh Murarka, a analysis analyst at Mumbai-based Choice Broking. “We expect the deal momentum in India’s south to continue,” he added.
UltraTech’s acquisition consists of 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 develop 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 property, decreasing the time to market in contrast to greenfield initiatives.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, expressed pleasure concerning the acquisition, highlighting its potential to improve 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 opportunity is an exciting one, as it enables UltraTech to serve the Southern markets more effectively and accelerates the path to over 200 MTPA capacity,” mentioned Birla. “These investments have also facilitated India’s nationwide infrastructure upgrade, powering our country’s growing need for housing, roads, and other vital infrastructure.”
With this acquisition, UltraTech solidifies its management in 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 changing into a world constructing options champion.
Meanwhile, the Adani Group, one other main participant in the Indian cement business, can be on an enlargement spree. The group lately 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 needed regulatory approvals. This transfer marks a big step in UltraTech’s ongoing efforts to develop its market share and operational capabilities in India’s quickly rising cement business.
(With inputs from companies)
