Birla Corp hopes to complete acquisition of Reliance Cement by September
Kolkata, July 8 (IANS) Birla Corporation Limited (Birla Corp), the M.P. Birla Group’s flagship firm, is hoping to complete the acquisition of the entire cement business of Reliance Infrastructure Limited by September after getting all the necessary regulatory clearances, a company official said on Friday.
The company had already signed a share purchase agreement with Reliance Infrastructure Ltd in the last fiscal for acquisition of its entire cement business for an enterprise value of Rs 4,800 crore. According to the agreement, the city-based cement-maker will acquire all the shares of Reliance Cement Company Private Limited (RCCPL).
“The acquisition is under implementation. It is subject to the approval of regulatory authorities. We are in a process of addressing these. We hope the acquisition should be through by September,” said Birla Corp’s Chairman Harsh V. Lodha.
This acquisition will enable the company take its total capacity from 10 MTPA to 15.5 MTPA, he said after the company’s 96th Annual General Meeting here.
The company’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, the company said earlier.
RCCPL has three cement units — an integrated cement plant at Maihar (Madhya Pradesh) and grinding units at Kundanganj (Uttar Pradesh) and Butiburi (Maharashtra).
According to the company’s latest report, the company 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.