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Binani Cement has become a wholly-owned subsidiary of UltraTech Cement, an Aditya Birla Group company, effective Tuesday. This follows Supreme Court’s ruling on Monday upholding a National Company law Appellate Tribunal (NCLAT) order that approved the Aditya Birla group company’s offer to pay about ₹8,000 crore for the stressed asset of Binani Cement in an insolvency-driven process.
The board of UltraTech, at its meeting held on Monday, approved the company’s proposal to make Binani Cement a wholly-owned subsidiary from Tuesday, said UltraTech in a statement on Wednesday.
UltraTech has acquired Binani Cement’s 6.25-million tonnes per annum (mtpa) plant in Rajasthan, including an integrated cement unit and a split grinding unit, for ₹8,024 crore. This acquisition gives the company access to superior-quality limestone reserves. Binani’s subsidiaries in China and the UAE also stand transferred to UltraTech.
To make the integration process smooth, UltraTech has appointed G Balasubramaniam, former Unit Head, Awarpur, as Head of Binani Cement’s integrated cement units. The operations at the acquired asset would be led by Sudeep Grover and Raju Anklesaria, head of UltraTech’s North and West zone operations.
With the addition of the Binani asset, UltraTech’s network has grown to 50 plants across India. Its overall capacity is currently at 98.75 mtpa with an additional four mtpa being commissioned.
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