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UltraTech Cement acquires 32.72% stake in India Cements, followed by a mandatory 26% open offer, to gain a strong foothold in the South market.
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The acquisition will increase UltraTech’s total installed capacity to over 165 million tonnes per annum, making it the largest player in the sector.
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The move is seen as a strategic play to pre-empt Adani Group’s Ambuja Cements and to tap into the growing demand in the South market.
UltraTech Cement, part of the Aditya Birla Group, has announced the acquisition of a 32.72% stake in India Cements, a leading player in the South market. This move will give UltraTech a strong foothold in the region, which is fragmented with over 45 players. The acquisition will also increase UltraTech’s total installed capacity to over 165 million tonnes per annum, making it the largest player in the sector.
The move is seen as a strategic play to pre-empt Adani Group’s Ambuja Cements, which has been expanding its presence in the South market. UltraTech’s acquisition of India Cements will also help it tap into the growing demand in the region, driven by government initiatives such as the Union Budget 2024. The South market is an important one for the cement industry, with limestone availability and development across the region.
The acquisition is expected to be beneficial for UltraTech, as it will increase its market share in the South to around 25% by FY27. The company’s ambition is to hit a capacity of 200 million tonnes per annum, and this acquisition is a significant step towards achieving that goal.