UltraTech Cement is Set to Reach 149.14 MTPA Total Capacity Following Kesoram Industries Merger

UltraTech Cement Set to Reach 149.14 MTPA Total Capacity Following Kesoram Industries Merger

UltraTech Cement, the flagship company of the Aditya Birla Group, has successfully acquired Kesoram Industries' cement business through a share-swap deal. Upon the successful completion of this merger, UltraTech Cement's overall capacity will increase to 149.14 million Tpa, inclusive of its international operations. Read SURFACES REPORTER (SR)’s complete report below:

The Board of Directors of UltraTech Cement has given its approval for a scheme of arrangement, paving the way for the acquisition of Kesoram Industries' cement business in an all-stock deal. The move is aimed at expanding UltraTech Cement's production capacity and market presence in both western and southern India.

UltraTech's Strategic Acquisition

Under the terms of the agreement, Kesoram Industries, the flagship company of the BK Birla Group, will demerge its cement business, which includes two integrated cement units located in Karnataka and Telangana. These units boast a combined installed capacity of 10.75 million tons per annum (tpa). The demerged cement business will be integrated into UltraTech Cement, the leading cement company of the Aditya Birla Group led by Kumar Mangalam Birla.

Capacity Surge

Upon the successful conclusion of the proposed merger involving Kesoram's cement business, UltraTech's overall capacity will surge to 149.14 million tpa, encompassing its international operations. This strategic undertaking aligns with UltraTech's overarching objective of attaining a 200 million tpa cement capacity in India.

Financial Implications

The acquisition will result in an augmentation of UltraTech's equity capital to Rs 294.66 crore, with the gross enterprise value of the deal estimated at approximately Rs 7,600 crore. The transaction is anticipated to be finalized within 9-12 months, subject to regulatory approvals.



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