Dalmia Cement (Bharat) Limited (DCBL) has increased its stake in OCL India from the current 21.7 per cent to 45.4 per cent through an inter se transfer, which is estimated to be around Rs 177 crore.
The acquisition cost of OCL stake at $50 per tonne is much below the replacement cost for a cement plant, according to a company announcement.
The acquisition was completed in an all-cash deal, at the ruling market price. It was funded through internal accruals.
The present cement capacity of Dalmia Cement is nine million tonnes a year while OCL India has a capacity of 5.3 million tonnes.
OCL India, is a diversified company with interests in cement and refractory business. It has a strong presence in the eastern region of the country.
“As a first step towards becoming a pan-India player, we have extended our cement footprints from southern region to east India. We now have access to the high growth eastern market. With this strategic investment, our profitability is likely to improve further,” said Puneet Dalmia, managing director, DCBL.
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Dalmia Cement with a gross income of around Rs 2,500 crore has business interests in two major segments — cement and sugar. It has cement plants in southern states of Tamil Nadu at Dalmiapuram and Ariyalur and in Andhra Pradesh at Kadapa.
The Delhi-headquartered company has three integrated sugar mills in Uttar Pradesh with a total installed cane crushing capacity of 22,500 tonnes per day.
It produces around 160 Mw of power through thermal and renewable energy. The company has an employee strength of over 3,500.