Birla Corp. To Accquire Lafarge India's 2 Cement Units
Birla Corp. has announced that it has come into an agreement with Lafarge India Private Limited (Lafarge India), wherein Birla Corp, either directly or through its wholly owned subsidiary, will acquire both the Jojobera and Sonadih cement businesses from Lafarge India for a value of Rs. 5,000 crores.
Under this transaction, in addition to the cement units, Concreto and PSC brands and an excellent management team are part of the deal. The tranaction has a cement capacity of around 5 million tonnes per annum (mtpa), with mineral rights over adequate reserves of limestone.
Birla Corp, part of the MP Birla Group has presence across cement and jute industries among others. Cement constitutes over 90% of the company's revenues with a total operational cement capacity of 8.79 mtpa.
The Cement Division of Birla Corporation Limited has seven plants, two each at Satna (M.P.) - Satna Cement Works & Birla Vikas Cement, Chanderia (Rajasthan) - Birla Cement Works & Chanderia Cement Works, Durgapur (W.B.) - Durgapur Cement Works & Durga Hitech Cement - and one at Raebareli (U.P.)-Raebareli Cement Works it has units in Rajasthan, Madhya Pradesh, Uttar Pradesh and West Bengal.
Post completion of the transaction, Birla Corp will have a total capacity of approx.14 mtpa.
Cement Business Acquisition
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