UltraTech Cements to Expand Footprint with Kesoram Cement Acquisition

UltraTech Cement's Board of Directors recently approved a scheme of arrangement to acquire Kesoram Industries' cement business in an all-stock deal, aiming to bolster its production capacity and geographical presence in the western and southern regions of India.

As per the agreement, Kesoram Industries, a part of the BK Birla Group, will demerge its cement business, encompassing two integrated cement units located in Karnataka and Telangana with a combined installed capacity of 10.75 million tonnes per annum (tpa). This business segment will merge into UltraTech Cement, a flagship company under the Kumar Mangalam Birla-led Aditya Birla Group.

Upon the successful merger of Kesoram's cement business, UltraTech Cement's overall capacity will surge to 149.14 million tpa, inclusive of its international operations. This strategic move aligns with UltraTech's objective of reaching a 200 million tpa cement capacity in India.

This acquisition will result in an increase in UltraTech’s equity capital to Rs 294.66 crore. The gross enterprise value of the deal is estimated at approximately Rs 7,600 crore. The transaction is anticipated to be completed within 9-12 months, subject to regulatory approvals.

News by Rahul Yelligetti