UltraTech Boosts Southern Footprint With 23 Per Cent Stake Acquisition In India Cements

Aditya Birla Group firm UltraTech on Thursday (27 June) announced that its board has approved the acquisition of a nearly 23 per cent stake in India Cements Limited (ICL).

The board approved a financial investment to purchase up to 7.06 crore equity shares of ICL at an average price of Rs 267 per share.

This non-controlling financial investment represents around 23 per cent of ICL's equity share capital and will involve a cost of approximately Rs 1,885 crore.

The news of the acquisition comes just a few days after Adani Group-owned Ambuja Cements announced the acquisition of another south-based cement company Penna Cement Industries Ltd (PCIL) for an enterprise value of over Rs 10,422 crore.

India Cements is a major player in the South Indian cement sector, with a consolidated installed capacity of 15.5 million tonnes (MT). In addition to cement, the company is also involved in the shipping business.

In April 2024, India Cements approved the sale of its grinding unit at Parli Vaijnath in Beed District, Maharashtra — with an installed capacity of 1.1 MTPA — to UltraTech for Rs 315 crore.

UltraTech is the largest cement producer in India, with an overall capacity of 152.7 MTPA. The third largest cement producer in the world now boasts of as much as 150 per cent of the capacity in the United States and 80 per cent of Europe's capacity.

Earlier this year, UltraTech acquired the cement business of Kesoram at an enterprise value of Rs 7,600 crore.