Nirma Group announces the acquisition of Emami Cement for Rs 5,500 crore
Nirma Group will acquire Emami Cement Limited (ECL) for an enterprise value of Rs 5,500 crore (US$ 786.95 million). At present, ECL operates one integrated cement plant in Risdah, Chhattisgarh; and grinding units in Bihar, West Bengal and Odisha with a total installed capacity of 8.3 million tonnes per annum; and with mining leases in Chhattisgarh, Rajasthan and Andhra Pradesh.
The acquisition is made through Nuvoco Vistas Corporation Limited, which is a subsidiary of Nirma.
This acquisition will increase the Nuvoco's total cement capacity in Eastern, Northern and Western India to 23.5 million tonnes (which includes the ongoing capacity expansion project in its Jojobera plant) and over 60 ready-mix plants. The combined operations will cover three facilities in Chhattisgarh, two each in Rajasthan and West Bengal, and one each in Bihar, Jharkhand, Odisha, and Haryana. Nuvoco's cement sales will spread across 12 states: Chhattisgarh, Odisha, West Bengal, Bihar, Jharkhand, Rajasthan, Madhya Pradesh, Gujarat, NCR region, Punjab, Uttar Pradesh and Haryana.
Mr Hiren Patel, Chairman of Nuvoco, said, "This acquisition is a momentous and transformational step in Nuvoco's journey to becoming a major building materials company in India delivering superior performance. Emami Cement will enable us to take our Cement business to the next level and continue to serve our customers with innovative and high-quality products that they trust".
Nuvoco Vistas Corporation Limited, a Nirma Group company, is a leading manufacturer and retailer of building materials. Presently, the company is amongst one of the major players in Cement in East, Central and North India with an installed capacity of around 14 MTPA.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.