A V Birla Group-controlled UltraTech Cement ltd has acquired a small Rajasthan-based firm, Gotan Lime Stone Khanij Udyog Private Ltd (GKUPL), for an undisclosed sum.
Not much is known about GKUPL but the name suggests it is engaged in the business of limestone, a raw material which is converted into cement.
It would be a small transaction for UltraTech, the largest cement manufacturer in India which has 22 cement plants in India with an installed capacity of 48.75 million tonnes per annum (MTPA) and had previously announced plans to expand it by additional 10 MTPA in FY13.
Recently, the company was reportedly in talks to buy limestone mine in Mozambique for as much as $287.08 million (Rs 1,500 crore). The firm was also looking at other cement assets in India including Adhunik MSP Cement’s Meghalaya plant. All this would boost its local dominance in India where it competes with its key rival Holcim (which controls ACC and Ambuja Cement).
In another deal in the sector which is in the process, Jaiprakash Associates’ cement plants in Gujarat and Andhra Pradesh are on the block with Irish firm CRH PLC emerging as a front runner, reportedly after talks with AV Birla Group stalled over valuations.
(Edited by Prem Udayabhanu)