Reliance Cement buyout to raise capacity to 15mtpa: Birla Corp

Birla Corporation today said the acquisition of Reliance Infra's cement business in a Rs 4,800 crore deal will increase its total capacity by to 15.5 million tonnes per annum from 10 MTPA at present.
Birla Corporation today announced an agreement with Reliance Infrastructure for acquisition of its entire cement business for a value of Rs 4,800 crore.
The company in a release said the two companies have agreed that Birla Corp shall acquire all the shares of Reliance Cement Company Pvt. Ltd. (Reliance Cement).
The acquisition, subject to approval of the Competition Commission of India, will be funded through existing cash reserves and incremental debt, the company said.

"This acquisition will provide Birla Corp ownership with high quality assets taking its total capacity from 10 MTPA to 15.5 MTPA, strengthening its presence in the high growth central region," the company said.
It said expansion potential will also be enhanced - with mineral concessions in Madhya Pradesh, Maharashtra, Rajasthan, Karnataka, Andhra Pradesh and Himachal Pradesh - to emerge as a pan-Indian player in the foreseeable future.
Reliance Cement has three cement units, an integrated cement plant at Maihar (Madhya Pradesh) and grinding units at Kundanganj (Uttar Pradesh) and Butiburi (Maharashtra).
Birla Corp will also benefit from Reliance Cement's strategically located raw material sources, captive coal mine, optimum manpower, efficient operating parameters and technical capability for producing top-end quality product.