According to local reports, Chettinad Cement Corporation has increased its stake in Anjani Portland Cement, based in Hyderabad, to 66.08% after acquiring a 17.08% stake through an open offer. The acquisition of Anjani Portland Cement by Chennai-based Chettinad Cement was announced in March 2014. The purchase forms part of the company’s strategy to increase its presence in the Andhra Pradesh market.
In other news, cement producers in Andhra Pradesh and Telangana have reduced cement prices by around Rs.20 per bag, despite insisting that the price could not be reduced to below Rs.335 due to increasing losses and higher prices in surrounding states. The recent reduction has brought the cost per bag down from approximately Rs.315 – 325 to Rs.290 – 305.
Chettinad Cement has purchased approximately 20.58% of shares of Anjani Portland Cement Ltd from shareholders, according to a filing released by the latter.
Indian cement demand increased by approximately 2% y/y in January – February 2014, with notable recovery in the northern, western and central regions due to a rise in construction projects.
India’s Chettinad Cement Corporation is set to formalise the acquisition of Anjani Portland Cement, which will increase the company’s presence in the Andhra Pradesh market.