21 November, 2018Share
The Board of Directors of UltraTech at its meeting held on the 19th of November, have approved UltraTech’s proposal to form Binani Cement Limited (BCL) into a wholly-owned subsidiary of UltraTech from the 20th of November. The company’s resolution plan submitted by UltraTech was approved earlier by the National Company Law Appellate Tribunal.
UltraTech has acquired BCL’s plants totaling 6.25 MTPA 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 UAE stand transferred to UltraTech.
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. The expansion potential that BCL offers will enhance UltraTech’s competitiveness and benefit consumers. On every count it will create value for all stakeholders, given the assets in operation. UltraTech is extremely well positioned to turnaround BCL’s operations, given its competence and unmatched experience in this sector.
To take this forward, UltraTech has combined the acquired markets with its North zone and West zone operations, which are led by Mr. Sudeep Grover and Mr. Raju Anklesaria. Mr. 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. UltraTech’s overall capacity currently is 98.75 MTPA with an additional 4 MTPA under commission. Its position as the third largest cement player globally (barring China) gets bolstered even as UltraTech continues to be the biggest player in India.