Winning Bizness Desk

Mumbai. Birla Group has made a big plan to compete with Adani in the cement industry and under this, Birla Group's cement company UltraTech has decided to buy an additional 32.72 percent stake in India Cement Limited for Rs 3,954 crore. The board of directors of the Aditya Birla Group company on Sunday approved the proposal to buy 32.72 percent stake of the promoters of India Cement Limited (ICL) at a price of Rs 390 per share. UltraTech gave this information to the stock markets on Sunday. According to the information given to the stock markets, three share purchase agreements have been signed to buy 32.72 percent of the equity share capital of ICL from the promoter family led by Srinivasan N and Gurunath and holding entities. After the completion of this Rs 3,954 crore deal, UltraTech's stake in ICL will exceed 55 percent. In such a situation, it will have to make an open offer as per the rules of the Securities and Exchange Board of India (SEBI). The board of directors of UltraTech has also approved an open offer from public shareholders at a price of Rs 390 per equity share. This price is 4.1 percent higher than the closing price of ICL shares of Rs 374.60 last Friday.

Ambuja Cements to enter in Sri Lanka

Notably, last month Adani Group company Ambuja Cements announced the acquisition of Penna Cement Industries Limited (PCIL) for Rs 10,422 crore. The deal saw an increase in the market share of the Adani Group in the cement sector in South India. Apart from this, due to that deal, Ambuja Cements will also be able to enter Sri Lanka where PCIL is already present through one of its subsidiary companies. It is said that the Adani Group company will also be able to get sufficient limestone reserves from this deal. This will help Ambuja Cements achieve its target of achieving 140 million tonnes per annum capacity by FY 2027-28.

Ambuja Cements also holds a 51% stake in ACC

Adani Group entered the cement business by acquiring Ambuja Cements from Swiss company Holcim in September 2022. Ambuja Cements also holds a 51 per cent stake in ACC Limited. The company also acquired Saurashtra-based Sanghi Industries Limited last December at an enterprise value of Rs 5,185 crore. PCIL, set up in 1991, had an integrated turnover of Rs 1,241 crore in FY 2023-24. Apart from South India, it also does business in Sri Lanka through its subsidiary.