UltraTech Cement Ltd, the flagship company of Aditya Birla group, has acquired the cement business of Kesoram Industries in a share-swap deal.
The deal is estimated to be valued at ₹7,600 crore, including the debt the company will take on from Kesoram.
In October 2023, UltraTech had announced a third round of capex of ₹13,000 crore to expand capacity to 160 million tonnes (mt). The addition of Kesoram’s business will support the firm in reaching its target of 200 mt.
Post acquisition, the firm’s annual cement capacity will reach 149.14 mt, including its overseas operations.
The cement business of the B.K. Birla Group company, Kesoram, consists of two integrated cement units at Sedam, Karnataka, and Basantnagar, Telangana with a total capacity of 10.75 million tonne per annum (mtpa). Out of this total capacity, 8.50 MTPA is clinker-backed and 2.25 mtpa is surplus grinding capacity. The cement business also has a 0.66 mtpa packing plant in Solapur, Maharashtra.
The arrangement for Kesoram’s demerger of its cement business into UltraTech is expected to be consummated within 9-12 months and subject to the approval of shareholders and creditors, stock exchanges, and regulatory authorities.
