UltraTech Cement Acquires India Cements' Grinding Unit for ₹315 Crore

UltraTech Cement, a leading cement manufacturer and part of the Aditya Birla Group, has announced the acquisition of a grinding unit from India Cements for a total consideration of ₹315 crore. The board of UltraTech Cement approved the purchase of the 1.1 million tonnes per annum (MTPA) grinding unit located in Parli, Maharashtra.

The acquisition is part of UltraTech Cement's strategy to expand its cement production capacity and strengthen its presence in the rapidly growing markets of Maharashtra. The Parli grinding unit includes a captive railway siding, which will provide logistical advantages for the company.

UltraTech Cement, already a major player in the Indian cement industry, aims to cater to the increasing demand for cement driven by infrastructure development and construction activities in the region. The transaction is subject to necessary regulatory approvals and is expected to be completed in the coming months.

Why this matters: The acquisition of India Cements' grinding unit by UltraTech Cement reflects the ongoing consolidation in the Indian cement industry. It highlights the strategic moves by large cement companies to expand their production capacities and gain a stronger foothold in key markets across the country.

The deal is expected to enhance UltraTech Cement's ability to meet the growing cement demand in Maharashtra and surrounding regions. "The acquisition will further strengthen UltraTech Cement's presence in the rapidly growing Maharashtra markets," the company stated in its announcement.

Key Takeaways

• UltraTech Cement acquires 1.1 MTPA grinding unit from India Cements for ₹315 crore.
• Acquisition aims to expand UltraTech's cement production capacity and strengthen presence in Maharashtra.
• Parli grinding unit includes a captive railway siding, providing logistical advantages.
• Transaction subject to regulatory approvals and expected to be completed in coming months.
• Deal reflects ongoing consolidation in the Indian cement industry as major players expand.