Hiren Patel is cementing Nirma as a conglomerate. The company, under the strategic leadership of its Managing Director Patel, outbids JSW Cement and Piramal Enterprises to buy Lafarge India cement assets for Rs 9,400 crore ($1.4 billion). Nirma currently operates a 2 mtpa cement unit; and now, Patel plans to take the company´s cement business to the next level with a strong platform like Lafarge´s India business. LafargeHolcim will sell its Lafarge India business including three plants and two grinding units with a total capacity of about 11 mtpa to Nirma, subject to approval by the Competition Commission of India (CCI). The additional capacity will help Nirma benefit from an expected surge in infrastructure construction.
The company will fund the acquisition through an equal mix of equity and debt. Under the inspiring and dynamic Patel, Nirma can indeed expect the acquisition to be a success and a transformation for its cement business.