 "Birla Corp buys Reliance Cement for Rs 4,800 crore")
Reliance Infrastructure Limited (RInfra) has sold its subsidiary Reliance Cement Company Private Limited (RCCPL) to Birla Corporation Limited, the flagship company of the M P Birla Group, for Rs 4,800 crore. Anil Ambani-owned RInfra, which aims to become debt-free on standalone basis, will use the proceeds to reduce debt.
RCCPL has an integrated cement capacity of 5.08 million tonne per annum (mtpa) at Maihar (Madhya Pradesh) and Kundanganj (Uttar Pradesh) and a grinding unit of 0.5 mtpa at Butibori, Maharashtra.
Harsh Lodha, chairman of Birla Corp, said, "Reliance Cement fits our plans to grow the business profitably very well and offers lucrative prospects for creating synergy with existing operations. It provides an excellent platform for increasing our footprint in existing as well as new geographies.”
Birla Corp’s 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. 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.
Birla Corp, established in 1919, is has presence across cement and jute; with cement constituting more than 90 percent of its revenues. It has units in Rajasthan, Madhya Pradesh, Uttar Pradesh and West Bengal.
The transaction is subject to approval of the Competition Commission of India and other applicable regulatory approvals.
RCCPL has an integrated cement capacity of 5.08 million tonne per annum (mtpa) at Maihar (Madhya Pradesh) and Kundanganj (Uttar Pradesh) and a grinding unit of 0.5 mtpa at Butibori, Maharashtra.
Harsh Lodha, chairman of Birla Corp, said, "Reliance Cement fits our plans to grow the business profitably very well and offers lucrative prospects for creating synergy with existing operations. It provides an excellent platform for increasing our footprint in existing as well as new geographies.”
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RCCPL acquisition will take Birla Corp’s cement capacity from 10 mtpa to 15.5 mtpa strengthening its presence in the high growth central region. The company's expansion potential will also be enhanced - with mineral concession in states
Birla Corp’s 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. 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.
Birla Corp, established in 1919, is has presence across cement and jute; with cement constituting more than 90 percent of its revenues. It has units in Rajasthan, Madhya Pradesh, Uttar Pradesh and West Bengal.
The transaction is subject to approval of the Competition Commission of India and other applicable regulatory approvals.