Kumar Mangalam Birla’s big move, completes Rs 39540000000 deal, acquires stake in…,big challenge to Gautam Adani in …

Kumar Mangalam Birla promoted UltraTech Cement has significantly increased its stake in India Cements, acquiring an additional 32.72% of equity shares, thereby raising its total shareholding to 55.49%. This acquisition, completed under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, has resulted in India Cements becoming a subsidiary of UltraTech Cement with immediate effect.

According to an exchange filing on December 24, UltraTech acquired 10,13,91,231 equity shares, representing 32.72% of India Cements’ equity share capital. Combined with its prior holding of 7,05,64,656 equity shares, or 22.77%, UltraTech now owns 17,19,55,887 equity shares, amounting to 55.49% of India Cements’ equity share capital.

On July 28, UltraTech Cement had announced the acquisition of a 32.72 per cent stake in India Cements Ltd (ICL) from promoters and their associates in a Rs 3,954-crore deal, which will expand its footprint in the highly competitive and fast-growing southern cement market.

Besides, Ultratech has also announced a Rs 3,142.35 crore open offer to acquire 26 per cent share of ICL from its shareholders.

UltraTech’s Position After Acquisition 

The acquisition marks a major milestone, solidifying UltraTech’s position as a key player in the cement industry. Already recognized as the largest producer of cement in India, UltraTech’s expanded control over India Cements further strengthens its market presence and operational capabilities.

The move aligns with UltraTech’s strategic objectives to enhance its market dominance and achieve greater economies of scale in the competitive cement industry.

Brila VS Adani In Cement Industry

The Indian cement industry is witnessing a consolidation and heightened rivalry between two corporate houses Kumar Mangalam Birla-led Aditya Birla Group and Gautam Adani-led Adani Group snapping smaller players.

The Adani group has plans in the works to raise its production capacity to 140 MTPA by FY28, just a shade below market leader UltraTech’s current capacity of 156.66 MTPA of grey cement.

Adani Cement recently announced the acquisition of CK Birla group firm Orient Cement, through which it will achieve a capacity of 100 MT (million Tones) per annum by the end of FY25 and a gain of 2 per cent in the overall market share in the country.

It has completed the acquisition of Saurashtra-based Sanghi Industries, Penna Industries and recently announced the acquisition of CK Birla group firm Orient Cement as part of its inorganic growth strategy.

Aditya Birla group also plans to maintain its lead with 200 MTPA capacity by FY27. UltraTech is also in the process of acquiring Kesoram Industries’ cement business and is awaiting regulatory clearances.