Indian cement producer, UltraTech, part of industrial conglomerate, Aditya Birla, has completed its purchase of Jaiprakash Associates cement business for US$2.5 billion. The deal includes six integrated cement plants and five grinding units with a capacity of 21.2 million tpy.
The acquired assets will expand UltraTech’s geographic reach through the Indian states of Himachal Pradesh, Uttar Pradesh, Uttarakhand, Madhya Pradesh, and Andhra Pradesh.
These areas represent “high growth markets where [UltraTech’s presence] needed greater reinforcement,” said Kumar Mangalam Birla, UltraTech’s Chairman.
The UltraTech executive also said that the new plants would now see process and technology upgrades to improve capacity utilisation. There would also be advantages from manufacturing, distribution, and logistical synergies, while UltraTech’s lead time in these regions covered by the acquired plants would be reduced.
“This will enhance competitiveness, benefit consumers, and, in turn, create value for all our stakeholders,” concluded Birla.
Following the deal, UltraTech now owns 18 integrated cement plants, one clinkerisation unit, 25 grinding units, and seven bulk terminals, making the company the largest cement producer in India and the fourth-largest non-Chinese cement maker globally.
Read the article online at: https://www.worldcement.com/indian-subcontinent/30062017/aditya-birlas-ultratech-completes-jaiprakash-deal/