In a bold strategic move aimed at consolidating its dominance in India’s cement industry, UltraTech Cement has unveiled a major acquisition deal. The company has committed Rs 3,954 crore ($472.38 million) to secure a controlling stake in India Cements.
The transaction will see UltraTech Cement acquire a 32.72 per cent share in India Cements, purchasing these shares from the company’s promoters and their affiliates at Rs 390 per share. This follows a previous acquisition in June, where UltraTech acquired a 23 per cent stake in India Cements. Upon completion of this latest deal, UltraTech’s ownership in India Cements will surpass 55 per cent, triggering a mandatory open offer to acquire additional shares from public investors at the same price.
This acquisition aligns with UltraTech’s strategic vision to enhance its presence in India’s southern states, particularly Tamil Nadu, and is expected to play a pivotal role in the company’s target to reach a production capacity of 183.5 million MT by the end of March 2027. The Indian cement market is on a growth trajectory, anticipated to nearly double in value to $49 billion by 2029, driven by extensive infrastructure developments under the current government.
The acquisition involves obtaining a 28.42 per cent stake from promoters Srinivasan N, Chitra Srinivasan, Rupa Gurunath, and SK Asokh Baalaje, in addition to a 4.30 per cent stake from Sri Saradha Logistics. Once finalised and subject to regulatory approvals, this deal will substantially expand UltraTech’s footprint in southern India and provide the company with valuable, ready-to-use assets, offering a quicker path to market compared to new projects.
The UltraTech-India Cements deal is expected to be completed within six months, pending regulatory approvals, marking a significant milestone in UltraTech’s continued expansion and dominance in the Indian cement sector.