UltraTech announces to acquire Samruddhi Cement

UltraTech announces to acquire Samruddhi Cement
Aditya Birla Group owned UltraTech Cement is set to become country’s top cement firm by acquiring its sister unit Samruddhi Cement. The proposal has already been approved by respective boards of both firms.

The stockholders of Samruddhi would get three shares of UltraTech per seven shares held in Samruddhi.

Currently, Swiss firm Holcim has a significant share in the 200-million tone cement market in India through ACC and Ambuja Cement.

The consolidation move would make Aditya Birla Group as the world's 10th largest cement firm with total production capacity of 48.8 million tones.

Kumar Mangalam Birla, Chairman of Aditya Birla Group informed, "The merger will achieve the group's objective of consolidating its cement business into a single entity, thereby creating a platform that will help in pursuing aggressive growth going forward."

Country’s cement market has started upward journey in response to the improving market conditions and improvement in demand in the rural, road and infrastructure projects. UltraTech has also announced to issue 149.5 million new shares in a bid to further push its capital to $59 million.