Birla Corp Completes Acquisition of Reliance Cement for Rs 4,800 Crore
Birla Corp acquired 100 percent equity shares of Reliance Cements from RIL, making it a wholly-owned subsidiary of Birla.
Birla Corporation Ltd., on Monday, completed the acquisition of Reliance Infrastructure Ltd.’s cement business.
The company acquired 100 percent equity shares of Reliance Cements Company Private Ltd. from RIL, making it a wholly-owned subsidiary of Birla, it said in a filing to the exchanges.
In an earlier press release in February, Birla had announced that acquisition of the entire cement business will be for an enterprise value of Rs 4800 crore.
The acquisition will increase the total capacity of the company to approximately 15.5 million tonnes per annum from around 10 million tonnes per annum. It also boosts Birla’s pan-India expansion plans in Madhya Pradesh, Maharashtra, Rajasthan, Karnataka, Andhra Pradesh and Himachal Pradesh, the release stated.
The deal gives Birla access to three units of Reliance Cements’ – an integrated plant at Maihar, Madhya Pradesh, and grinding units in Kundanganj, Uttar Pradesh and Butiburi, Maharashtra, according to the release.
Harsh Lodha, Chairman of Birla Corp, termed the acquisition as an “important transaction” in the company’s history, in the release.
Reliance Cement fits our plans to grow the business profitably very well and offers lucrative prospects for creating synergy with existing operations.Harsh V Lodha, Chairman, Birla Corp