UltraTech Cement, part of the Aditya Birla Group, has completed the acquisition of a 32.72% stake in India Cements Ltd (ICL) from its promoters, marking a significant shift in the South-based cement firm’s ownership. The Aditya Birla Group’s UltraTech Cement has finalized the acquisition of 10.13 crore equity shares in India Cements Ltd (ICL), representing a 32.72% stake in the company’s equity share capital.
This latest acquisition, combined with UltraTech’s existing stake of 7.05 crore shares (22.77%), has raised its total holding to 17.19 crore shares, equating to 55.49% of ICL’s equity. UltraTech confirmed this development in a regulatory filing late Tuesday night, stating that ICL has officially become its subsidiary as of December 24, 2024.
Following the transaction, ICL announced on Wednesday that N Srinivasan, former Vice Chairman and Managing Director, along with his family members Rupa Gurunath and Chitra Srinivasan, and board member V M Mohan, have resigned. Additionally, independent directors S Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar, and Sandhya Rajan stepped down at the end of business hours on December 25, 2024.
The board has welcomed new appointments, including directors K C Jhanwar, Vivek Agrawal, E R Raj Narayanan, and Ashok Ramachandran. Furthermore, independent directors Alka Bharucha, Vikas Balia, and Sukanya Kripalu have joined the board.
The acquisition follows the Competition Commission of India (CCI)’s approval of the Rs 7,000-crore deal, which also includes UltraTech’s open offer to acquire an additional 26% stake in ICL. The move is expected to enhance UltraTech’s presence in the competitive southern cement market.
UltraTech’s Rs 3,954-crore purchase of ICL’s promoter stake, announced on July 28, 2024, and a subsequent Rs 3,142.35-crore open offer, reflect the company’s strategy to solidify its market position. Earlier in June, UltraTech had acquired a 23% stake in ICL, including shares from the Damani Group in a deal valued at around Rs 1,900 crore.
The Indian cement industry is witnessing significant consolidation, with the Aditya Birla Group and Gautam Adani-led Adani Group competing to acquire smaller players. Adani Cement, targeting a production capacity of 140 million tonnes per annum (MTPA) by FY28, is closing in on UltraTech’s current capacity of 156.66 MTPA. Recent acquisitions by Adani include CK Birla’s Orient Cement, Sanghi Industries, and Penna Industries, with plans to reach 100 MTPA by FY25. UltraTech aims to maintain its market leadership, targeting a production capacity of 200 MTPA by FY27. It is also in the process of acquiring the cement business of Kesoram Industries, pending regulatory approvals.
UltraTech Cement, a flagship company of the Aditya Birla Group, is the largest manufacturer of grey cement, ready mix concrete (RMC), and white cement in India. With a strong presence across domestic and international markets, UltraTech operates more than 20 integrated cement plants and several grinding units, offering products that cater to a wide range of construction needs.
The company’s commitment to sustainability is reflected in its efforts to reduce its carbon footprint through energy-efficient practices and innovative technologies, making it a leader in green building solutions. UltraTech Cement plays a crucial role in India’s infrastructure development, contributing to iconic projects while maintaining a strong focus on environmental responsibility and innovation.
