The Competition Commission of India (CCI) has granted its approval to UltraTech Cement‘s proposed acquisition of Kesoram Cement Business from Kesoram Industries. Kesoram Industries specializes in the production of grey cement through its Kesoram Cement Business.
UltraTech Cement, a part of the Aditya Birla Group, is India’s largest manufacturer of grey cement, ready mix concrete (RMC), and white cement. With a presence in five countries, UltraTech is a leading player in the global cement industry. The company has a consolidated capacity of 116.75 million tonnes per annum (MTPA) of grey cement, including 2 MTPA under commissioning, 14 MTPA of white cement, and 2 MTPA of wallcare putty.
UltraTech’s operations span 23 integrated plants, 26 grinding units, and seven bulk terminals. The brand is known for its commitment to sustainability, innovation, and excellence in customer service. UltraTech Cement is dedicated to building a sustainable future and contributing to the nation’s infrastructure development.
The proposed combination pertains to UltraTech Cement Ltd’s acquisition of Kesoram Industries Limited’s grey cement business under a composite scheme of arrangement dated November 30, 2023, according to an official statement. The CCI has given the green light to the deal. UltraTech, a publicly listed company, is involved in manufacturing and selling grey cement, white cement, ready-mix concrete, clinker, and building products in India.
It also provides building solutions in the country. A subsidiary of Grasim Industries Ltd, UltraTech Cement announced last November its plan to acquire the cement business of Kesoram Industries, a flagship company of the BK Birla Group, in an all-share deal valued at approximately ₹7,600 crore, inclusive of debt.
In a separate announcement, the CCI stated that it has approved the proposal of the Shriram Ownership Trust to acquire a 29.44% stake in Shriram Investment Holdings Pvt Ltd. Shriram Investment Holdings Pvt Ltd (SIHL) operates as an unregistered core investment company. The proposed combination involves Shriram Ownership Trust (SOT) acquiring 9.44% and 20% stakes in Shriram Investment Holdings Pvt Ltd from APRN Enterprises Pvt Ltd (APRN) and Piramal Enterprises Ltd (PEL), respectively, as outlined in the release.
As of March 31, 2023, SIHL has a standalone asset size of ₹3,976 crore and a turnover of ₹1,881 crore. SIHL does not have its own business operations but holds investments in various companies, the majority of which are 100% subsidiaries of SIHL. Transactions exceeding a certain threshold require approval from the regulator, which oversees unfair business practices and promotes fair competition in the market.
