23% stake in India Cements acquired by UltraTech
Cement

23% stake in India Cements acquired by UltraTech

In an increasing struggle for control over capacities in the highly regionalized and freight-intensive cement industry, UltraTech Cement has purchased a 23% stake in India Cements for approximately Rs 19 billion, stifling any further bids for the top peninsular producer. The cement industry is the second-largest in the world, behind China. The largest cement manufacturer in the nation, UltraTech, part of the Aditya Birla Group, purchased 70.6 million shares of India Cements as a "non-controlling financial investment" for a price as high as Rs 267 a share, according to the acquirer's regular disclosures on Thursday morning. Billionaire investor Radhakishan Damani, his family, and his investment companies, Derive Investments and Derive Trading and Resorts, sold their stakes to UltraTech. Manish Valecha, a research analyst at Anand Rathi Institutional Equities, mentioned that UltraTech had blocked the capacity of almost 15 million tonnes by investing Rs 1,900 crore. He noted that, as a result, UltraTech was now ahead in the race in terms of additions. Regarding the open offer, Valecha commented that regardless of whether it occurred now or later, the 15 million tonnes would not be available to anyone else.

Valecha pointed out that this move by UltraTech followed the announcement of Adani Cement's acquisition of south-based Penna Industries, which had a capacity of 14 million tonnes. Additionally, he noted that Adani Cement and JSW Cement were also contenders for Damani's stake in India Cements.

UltraTech, which currently holds a 23-24% market share in India, aims to increase its production capacity to 200 million tonnes by March 2027. The company has already added more than 50 million tonnes of capacity in five years, with 19 million tonnes added in just one year.

While the southern markets of India contribute a third of the country's total cement production, UltraTech's presence in this region was previously lower compared to other parts of the country. The acquisition of Kesoram Industries' cement division last year, with a capacity of 10.75 million tonnes and manufacturing units in Telangana and Karnataka, was part of UltraTech's strategy to strengthen its foothold in the south.

UltraTech's investment in India Cements, a major player in south India with a capacity of approximately 13 million tonnes and operations across Tamil Nadu, Andhra Pradesh, and Telangana, further underscores its commitment to expanding in this region. N. Srinivasan and his family own a 28.42% stake in India Cements, with a portion of those shares pledged. Damani's stake in India Cements has increased gradually since September 2019, reaching 22.76% by December 2021.

In an increasing struggle for control over capacities in the highly regionalized and freight-intensive cement industry, UltraTech Cement has purchased a 23% stake in India Cements for approximately Rs 19 billion, stifling any further bids for the top peninsular producer. The cement industry is the second-largest in the world, behind China. The largest cement manufacturer in the nation, UltraTech, part of the Aditya Birla Group, purchased 70.6 million shares of India Cements as a non-controlling financial investment for a price as high as Rs 267 a share, according to the acquirer's regular disclosures on Thursday morning. Billionaire investor Radhakishan Damani, his family, and his investment companies, Derive Investments and Derive Trading and Resorts, sold their stakes to UltraTech. Manish Valecha, a research analyst at Anand Rathi Institutional Equities, mentioned that UltraTech had blocked the capacity of almost 15 million tonnes by investing Rs 1,900 crore. He noted that, as a result, UltraTech was now ahead in the race in terms of additions. Regarding the open offer, Valecha commented that regardless of whether it occurred now or later, the 15 million tonnes would not be available to anyone else. Valecha pointed out that this move by UltraTech followed the announcement of Adani Cement's acquisition of south-based Penna Industries, which had a capacity of 14 million tonnes. Additionally, he noted that Adani Cement and JSW Cement were also contenders for Damani's stake in India Cements. UltraTech, which currently holds a 23-24% market share in India, aims to increase its production capacity to 200 million tonnes by March 2027. The company has already added more than 50 million tonnes of capacity in five years, with 19 million tonnes added in just one year. While the southern markets of India contribute a third of the country's total cement production, UltraTech's presence in this region was previously lower compared to other parts of the country. The acquisition of Kesoram Industries' cement division last year, with a capacity of 10.75 million tonnes and manufacturing units in Telangana and Karnataka, was part of UltraTech's strategy to strengthen its foothold in the south. UltraTech's investment in India Cements, a major player in south India with a capacity of approximately 13 million tonnes and operations across Tamil Nadu, Andhra Pradesh, and Telangana, further underscores its commitment to expanding in this region. N. Srinivasan and his family own a 28.42% stake in India Cements, with a portion of those shares pledged. Damani's stake in India Cements has increased gradually since September 2019, reaching 22.76% by December 2021.

Next Story
Infrastructure Urban

Mount Invests Rs 250 Cr, Adds PUF & PEB Plants, 400+ Jobs

TUMKUR, Karnataka, January 8, 2025 - Mount Roofing & Structures Private Limited, one of India's  fastest-growing manufacturers in PUF and a leading solutions provider across Pre-Engineered Building  (PEB) and Polycarbonate sheets, simultaneously inaugurated its second fully automated continuous  Sandwich Panel manufacturing line and a new PEB manufacturing plant at its integrated campus in  Tumkur." The milestone expansion, part of a total investment of INR 250 crores, marks a significant  advancement in the company's commitment to engineered performance, manu..

Next Story
Infrastructure Urban

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Next Story
Infrastructure Urban

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App