Birla Corp has moved to the front of the line to acquire Anil Ambani's cement business, following a competitive sale process that also saw rival offers from leading private equity buyout funds.
Birla Corp is reportedly looking to acquire Reliance Infrastructure's cement business for Rs 5000 crore.
Various other companies, such as Jindal Steel Works Cement, JK Lakshmi Cement and Carlyle and China Resources Cement Holdings are also in the bidders' list.
All the companies submitted their final bidding price to Reliance on 25 December. The final decision is expected to be taken in a fortnight, and the official announcement will follow next week.
Reliance Infrastructure has projects in various sectors such as roads, metro rail and cement. Its cement company has a total installed capacity of 5.8 million tpy of which 2.8 million tpy is located in Madhya Pradesh and 2.2 million tpy in Uttar Pradesh.
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Birla Corp has announced a lower Q1 net profit of Rs 111.88 crores, as compared to Rs 118.28 crores in the previous corresponding quarter. The results have been attributed to reduced ex-works realisation in the cement division.