UltraTech Cement to acquire India Cements’ Maharashtra asset for ₹315 crore

UltraTech Cement, an Aditya Birla Group company, will acquire a 1.1 million tonne per annum grinding unit and captive railway siding at Parli in Maharashtra from India Cements for ₹315 crore.

Both companies have entered into an agreement to execute the transaction.

The Board of Directors of UltraTech Cement approved the deal at its meeting held on Saturday, said the company at its meeting.

After the acquisition, UltraTech will expand the grinding capacity at Parli by 1.2 mtpa with an investment of ₹166 crore.

The purchase of the asset will help the company to strengthen its presence in the rapidly growing Maharashtra markets, it added.

UltraTech will also expand capacity at its Dhule plant in Maharashtra by 1.8 mtpa with an investment of Rs 338 crore.

The brownfield expansions will be funded through internal accruals and completed by FY’26.

Brownfield expansion

After completing the brownfield expansion with an investment of ₹504 crore, the overall domestic capacity will increase by 3 mtpa to 150.3 mtpa from the current domestic capacity of 147.3 mtpa (including the acquired Parli unit).

UltraTech has received NCLT approval for the Scheme of Amalgamation of UltraTech Nathdwara Cement, a wholly-owned subsidiary of the company and its wholly-owned subsidiaries Swiss Merchandise Infrastructure and Merit Plaza with itself.

The merger has come into effect from April 20.

All assets and liabilities of the three subsidiaries will be transferred to UltraTech and the three companies will be dissolved without winding up, said UltraTech.

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