UltraTech to incorporate Binani Cement as subsidiary; acquisition gives firm access to top quality limestone reserves

UltraTech Cement said on Wednesday its board has approved a proposal to incorporate Binani Cement as it a wholly-owned subsidiary.

Press Trust of India November 22, 2018 12:59:09 IST
UltraTech to incorporate Binani Cement as subsidiary; acquisition gives firm access to top quality limestone reserves

New Delhi: UltraTech Cement said on Wednesday its board has approved a proposal to incorporate Binani Cement Ltd (BCL) as it a wholly-owned subsidiary.

The National Company Law Appellate Tribunal (NCLAT) last week had approved the revised bid of Aditya Birla group firm UltratTech Cement for debt-ridden Binani Cement.

"The board of directors of UltraTech at its meeting held on the 19 November, has approved UltraTech's proposal to form Binani Cement Limited (BCL) into a wholly-owned subsidiary of UltraTech from 20 November," UltraTech Cement said in a statement.

UltraTech to incorporate Binani Cement as subsidiary acquisition gives firm access to top quality limestone reserves

Representational image. Reuters.

UltraTech has acquired BCL's plants totalling 6.25 MTPA (million tonne per annum) in Rajasthan, inclusive of an integrated cement unit and a split grinding unit at a value of Rs 8,024 crore.

"This acquisition gives the company access to superior quality limestone reserves. BCL's subsidiaries in China and the UAE stand transferred to UltraTech," the company said.

The move has been largely made on account of these factors and synergies that will stem from it. These include economies of scale, optimisation of costs, both in manufacturing and logistics, coupled with a wider distribution network, it added.

UltraTech is extremely well positioned to turnaround BCL's operations, given its competence and unmatched experience in this sector, the company said adding to take this forward it has combined the acquired markets with its North zone and West zone operations, which are led by Sudeep Grover and Raju Anklesaria.

It further said that G Balasubramaniam, formerly Unit Head, Awarpur, has moved as head of BCL's integrated cement unit.

With the addition of BCL's plants, UltraTech's network has grown to 50 plants pan India, the statement said.
UltraTech's overall capacity currently is 98.75 mtpa with an additional 4 MTPA under commission.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Ladakh stand-off: India, China hold 7th round of high-level military talks to finalise disengagement of troops at LAC
India

Ladakh stand-off: India, China hold 7th round of high-level military talks to finalise disengagement of troops at LAC

As per official sources, India will strongly oppose any demand by China for the withdrawal of Indian troops on the southern bank of the Pangong lake to kick-start the disengagement process

NBA: China state broadcaster CCTV hints Houston Rockets executive Daryl Morey 'paid price' for Hong Kong tweet
Sports

NBA: China state broadcaster CCTV hints Houston Rockets executive Daryl Morey 'paid price' for Hong Kong tweet

CCTV suspended NBA broadcasts last October after Morey tweeted "Fight for freedom, stand with Hong Kong", referring to protests Beijing calls separatist and seditious.

With 3.2% expansion in Q1, China becomes first major economy to return to growth since beginning of pandemic
World

With 3.2% expansion in Q1, China becomes first major economy to return to growth since beginning of pandemic

Chinese exporters have benefited from the economy’s relatively early reopening and global demand for medical supplies, according to a National Bureau of Statistics report