UltraTech Cement's Strategic Move in Southern Cement Market

The Competition Commission of India (CCI) has granted approval for UltraTech Cement, promoted by billionaire Kumar Mangalam Birla, to acquire a significant stake in India Cements. This move is aimed at expanding UltraTech's presence in the rapidly growing southern cement market, particularly in Tamil Nadu.

The proposed acquisition involves UltraTech Cement acquiring 32.72% of India Cements' paid-up equity share capital from the promoters and members of the promoter group of India Cements and Sri Saradha Logistics Pvt Ltd. Additionally, UltraTech has been granted clearance to acquire up to 26% of India Cements' paid-up equity share capital through an open offer.

UltraTech Cement, a subsidiary of Grasim Industries Ltd, is engaged in manufacturing and sales of grey cement, white cement, ready-mix concrete, clinker, and building products in India. India Cements, on the other hand, focuses on the manufacturing and sales of grey cement and ready-mix concrete as its core business.

This acquisition is part of UltraTech's strategy to strengthen its market position, with a consolidated capacity of 156.66 million tonnes per annum (MTPA) of grey cement, making it a leader in the Indian cement market.