Reliance Infrastructure Ltd has announced that it is in advanced talks to sell its cement business for US$394 million and a deal could be announced this week.
The buyer would also take over the cement unit’s outstanding debt of 24 billion rupees under the terms of the deal, giving the business an enterprise value of 50 billion rupees.
Reliance Infrastructure’s cement unit has three plants with a total installed capacity of 5.8 million tpy. Another 5 million tpy cement manufacturing plant is being developed in western Maharashtra state.
A consortium, which includes some private equity firms, is likely to emerge as the successful bidder for the unit.
Reliance Cement Company has expanded its operations into India’s Bihar state, where the cement market is expected to grow at a rate of 9% over the next few years.