UltraTech Cement's Strategic Move in the Putty Market

In a bold move to consolidate its position in the competitive putty manufacturing market, UltraTech Cement, a flagship company of the Aditya Birla Group, has announced the acquisition of the white cement business of Wonder Cement for an enterprise value of Rs 235 crore, including debt. This acquisition marks a significant step in UltraTech's expansion strategy.

About Wonder Cement and Its Strategic Location

Wonder Cement, owned by the Patni family, operates a 6-lakh million tonne white cement manufacturing plant in Rajsamand-Nathdwara, Rajasthan. The plant's proximity to large reserves of raw materials and UltraTech's existing putty manufacturing facilities in Rajasthan makes this acquisition a strategic fit for UltraTech.

Financial Growth and Market Expansion

The Patni family ventured into the wall putty manufacturing business in 2019, witnessing a remarkable growth in turnover from Rs 21 crore in FY23 to Rs 79 crore in FY24. This acquisition, expected to be finalized in three months, will enable UltraTech to enhance its putty production capacity, currently standing at 2.7 million tonnes, in a highly fragmented market.