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HeidelbergCement India, which recently was in focus as reports suggested that it is selling a minority stake to private equity firm Bain Capital, has sold its cement griding facility in Raigad district of Maharashtra to JSW Group.
The Indian arm of German cement maker had been exploring possible ways of improving margins of this grinding unit including the possibility to scale up operations but the same was not feasible due to infrastructural bottlenecks.
"The company has therefore decided to divest its interest in the unit," said a statement from the company.
The concerned parties are currently negotiating and finalizing the terms of the Business Transfer Agreement. The transaction will be finalized only after obtaining all relevant approvals including that of shareholders.
“The disposal is in line with HeidelbergCement’s philosophy of divesting less strategic assets with lower margins to focus on more strategic and key operations in Central India where the company had recently expanded its cement capacity from 2 to 5 million tonne per annum,” said Mr Ashish Guha - CEO and MD Heidelberg Cement India.
India continues to be a high growth market and the HeidelbergCement Group remains committed towards its growth plans for the country and will look at all organic and inorganic paths of growth, the company's statement added.
On BSE, shares of the cement maker closed weak at Rs 45.5, down 1.2% on Tuesday.
