India’s largest cement producer UltraTech Cement has emerged as the frontrunner to buy Emami Cement in an all-cash deal worth up to ₹7,000 crores in the final binding bid round, according to reports. Ambuja Cement, part of Switzerland’s LafargeHolcim, is reportedly the only other contender. UltraTech recently completed the acquisition of Century Textiles’ cement business.
The purchase of Emami Cement will help UltraTech make deeper inroads into eastern India and further consolidate its leadership of the domestic market.
UltraTech has been acquiring cement assets over the past few years to enhance its reach in tier II and tier III locations. It has been particularly keen on the eastern zone.
UltraTech recently completed the acquisition of Century Textile’s cement business, with the scheme of demerger becoming effective from 1 October.
UltraTech Cement acquired Rajasthan-based Binani Cement in November 2018 in a ₹7,950 crore deal through the bankruptcy resolution process. In June 2017, UltraTech acquired 21.2mtpa cement capacity from Jaiprakash Associates.