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

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Next Story
Infrastructure Energy

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

Next Story
Real Estate

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement