UltraTech Cement's Strategic Move

In a significant development for the Indian cement industry, UltraTech Cement has officially acquired India Cements, making it a subsidiary of the former. This acquisition, approved by the Competition Commission of India (CCI), marks a pivotal moment for both companies.

The deal allows UltraTech to integrate India Cements' substantial production capacity of 14.5 million tonnes across multiple states into its own consolidated capacity of approximately 155 million tonnes per annum (MTPA) of grey cement. This strategic move positions UltraTech Cement as an even more formidable player in the market.

According to a regulatory filing, UltraTech Cement has acquired 32.7% of India Cements' equity share capital, increasing its aggregate shareholding to 55.5%. This transaction, executed under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, officially made India Cements a subsidiary of UltraTech as of December 24, 2024.

This acquisition follows a previous agreement in July where UltraTech Cement struck a deal with India Cements' vice-chairman & MD N Srinivasan and his family to acquire their cement business for Rs 3,954 crore. The CCI's approval last week seals the deal, reflecting a significant consolidation within the Indian cement sector.

India Cements, one of the largest cement manufacturers in South India, has been facing financial challenges in recent quarters. Despite these issues, the company boasts a rich history and has been associated with several landmark projects, including the Pamban Bridge in Rameswaram, IIT Madras, and the Swami Vivekananda Rock Memorial in Kanyakumari.