Cement has disclosed the purchase of a grinding unit from India Cements for Rs. 315 crore and has declared its intention to inject a further Rs.504 crore to enhance the capacity of two units.
UltraTech in their stock exchange filing informed that the managerial board approved the acquisition and explained,"of a grinding unit having installed capacity of 1.1 million tonnes per annum in addition to a captive railway siding at Parli, Maharashtra from The India Cements Limited for a consideration of Rs. 315 crores".
The company also declared that they have already entered into an Asset Purchase Agreement with the seller. They also added that, the acquisition will enable the Company to enhance its foothold in the rapidly expanding Maharashtra markets.
In an another regulatory filing, the cement company said,that out of the total consideration of Rs. 315 crore the company will soon receive a sum of Rs. 307 crore, and the remaining Rs.8 crore will be paid within nine months from the agreement's date.
In the fiscal year ending on March 31, 2023, the unit being sold achieved a turnover of Rs. 250.66 crore and possessed a net asset value of Rs.75.10 crore.
UltraTech has announced that its board has given the green light for a brownfield capacity expansion project. This project involves increasing the capacity by 1.2 million tonnes per annum at Parli, with a cost of Rs 166.4 crore after acquiring the grinding unit. Additionally, there will be a capacity expansion of 1.8 million tonnes at Dhule in Maharashtra, with a cost of Rs 338 crore.
Following this departure, India Cements will possess approximately 13 million tonnes per year capacity in the southern region and 1.8 million tonnes in Rajasthan. The Banswara unit includes a 1.2-million tonne clinker plant and an accompanying 1.8-million tonne limestone mine as well.
Furthermore, UltraTech has obtained the necessary approval for its proposed amalgamation scheme involving Ultratech Nathdwara and its wholly-owned subsidiaries. The approval was granted by NCLT Kolkata and will be effective from April 1, 2023. It is worth mentioning that the Mumbai bench of the tribunal had already granted approval for this scheme last month.
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