India Cements: UltraTech to acquire 32.72% promoters' stake for ₹3,954 cr

Besides, Ultratech has also announced a Rs 3,142.35 crore open offer to acquire another 26% share of India Cements Ltd from its shareholders

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Aditya Birla Group flagship company UltraTech Cement will acquire a 32.72 per cent stake in India Cements from promoters and their associates for Rs 3,954 crore to expand its footprint in the highly competitive and fastgrowing Southern cement market, particularly Tamil Nadu.

Besides, Ultratech has also announced a Rs 3,142.35 crore open offer to acquire another 26 per cent share of India Cements Ltd (ICL) from its shareholders.

This announcement comes a month after Adani Group, the second largest cement maker announced the acquisition of Hyderabad-based Penna Cement for Rs 10,422 crore, which will add 14 MTPA, taking its capacity to 93 MTPA.

With an installed capacity of 154.86 million tonnes per annum (MTPA) of grey cement, UltraTech Cement leads the Indian cement industry. It has an ambition to become one of the largest cement companies in the world and and has set a target for 200 MTPA.

However, Adani Group, which entered the cement business in September 2022 after acquiring Ambuja Cement from Swiss firm Holcim for cash proceeds of $6.4 billion (about Rs 51,000 crore), is also pacing up.

Adani Group has set up a target to achieve a 140 MTPA capacity by FY28 and is aggressively expanding organically through capacity expansion at the existing units and also going for acquisitions. Through Ambuja, it also controls ACC Ltd and acquired MyHome Industries and Sanghi Industries in 2023.