UltraTech Cement

UltraTech Cement, the largest cement producer in India and part of the Aditya Birla Group, has finalized a deal to acquire a 32.72% equity stake in India Cements from its promoters for ₹3,954 crore, marking a significant shift in the cement industry landscape. The acquisition, priced at ₹390 per share, will result in N. Srinivasan, the former BCCI president and long-time managing director of India Cements, exiting the company. Following this deal, UltraTech will make a mandatory open offer to acquire an additional 26% from minority shareholders, potentially raising the total investment to ₹7,100 crore. This strategic maneuver aims to enhance UltraTech's market presence in the southern region, particularly in Tamil Nadu, as it works towards increasing its total capacity to over 200 MTPA. The transaction is contingent upon regulatory approvals and is expected to be completed within six months. UltraTech's current operational capacity stands at 154.86 MTPA, positioning it to capitalize on India Cements' established production capabilities of 14.45 MTPA.