After bagging Binani, UltraTech hopeful of increasing profits in N India

However, takeover will help cement firm to widen leadership gap in northern market

With Binani Cement under its belt, UltraTech’s leadership position in the northern markets will be strengthened. Consolidation in the industry will also be positive for cement pricing in the region. Moreover, the acquisition will enhance UltraTech’s capacity in the north to 24 million tonnes (mt), similar to that of Shree Cement. UltraTech’s capacity share, too, is expected to increase from 16 per cent to 24 per cent, say analysts. 

 At an enterprise value of Rs 79 billion, the transaction took place at an implied value of $100 per tonne of capacity (11 mt per annum or mtpa), according to analysts