Birla Corporation on Monday said it has completed acquisition of Anil Ambani's cement business, a wholly-owned arm of flagship Reliance Infrastructure, for an enterprise valuation of about Rs 4,800 crore.
Kolkata - August 22nd, 2016. RedNewswire/-
Following this, Reliance Infrastructure's cement arm Reliance Cement Company Private Limited (RCCPL) has become a wholly owned material subsidiary of Birla Corporation, the company said in a filing with the stock exchanges.
The company's stock closed at Rs 680.95 a share on the Bombay Stock Exchange, up by Rs 5.80 over Friday's closing price of Rs 675.15.
Earlier this month, Birla Corp had indicated it was on-course to complete the acquisition of Reliance Infrastructure's entire cement business. Birla Corp is in the process of completing the "acquisition process shortly," company officials added.
The acquisition will provide the company with ownership of modern plants and take its cement production capacity to 15.4 million tonnes per annum (mtpa) from the existing from 9.8 mtpa. It will also strengthen its presence in the high-growth central region.
Birla Corp's expansion potential will also be enhanced with mineral concession in Madhya Pradesh, Maharashtra, Rajasthan, Karnataka, Andhra Pradesh and Himachal Pradesh, it said in a release.
This apart, the company will also benefit from Reliance Cement's strategically located raw material sources, captive coal mine, optimum manpower, efficient operating parameters and technical capability for producing top-end quality product.
Incidentally, RCCPL has three cement units - an integrated cement plant at Maihar (Madhya Pradesh) and grinding units at Kundanganj (Uttar Pradesh) and Butiburi (Maharashtra).
(This article was first published on economic times and it is published here unedited.)