The Hindu Business Line : ACC to sell refractory business to ICICI Venture Funds for Rs 257 cr

Mr Tarun Das (left), Chairman, Associated Cement Companies Ltd, and Mr N.S. Sekhsaria, Deputy Chairman, at a company's 69th annual general meeting in Mumbai on Wednesday. — Shashi Ashiwal

Mumbai , July 13

ASSOCIATED Cement Companies (ACC) will sell its refractory business to ICICI Venture Funds for Rs 257 crore, the company's board of directors decided on Wednesday.

This is in keeping with the company's plans to exit from all its non-core businesses, said the Chairman, Mr Tarun Das. "We need to make this disinvestment in order to focus on cement," he said, at the company's AGM here.

The refractories business, which makes heat resistant cement products, has been doing quite well, with sales volumes rising by 34 per cent and sales income by 36 per cent during the last financial year.

From the point of view of the buyer, this would be the first time in India that a venture fund would be getting into managing a manufacturing business through a 100 per cent buyout, having edged out three or four other industry players who were in the fray for the acquisition.

ICICI Venture Funds is planning to work with the management of the refractories business in its operations.

This could set in motion a trend where funds will start managing businesses in the country, said sources close to the deal which took six months in the making.

I-Sec was the sole advisor to ICICI Ventures in the deal.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Suzuki Motorcycle plans Indian launch in Oct with 125-cc bike

ACC to sell refractory business to ICICI Venture Funds for Rs 257 cr

Superstar Exports to buy 15.61 pc stake in SQL Star

Uttam Galva raises $30 m thru FCCBs

Crisil sees steady ratings scenario

Williamson Tea board revamped

Ocimum buys German co's genomic diagnostics division — To merge US, India operations

Appointing commissioner to review records — Birla Corp minority shareholders' plea turned down

FDA bans sale of `Red Bull'

Information security is not a custom, more honoured in the breach than in the observance

BEML shareholders clear Rs 400-cr issue

ONGC forays into power, to set up project in Tripura

GKW shines on BIFR deal

ONGC to be worst hit under subsidy sharing

`Centre must launch full-fledged attack on building infrastructure'