UltraTech Cement has made an announcement confirming that the company’s board of directors has approved the proposal of incorporating Binani Cement (BCL) as a wholly-owned subsidiary. Apparently, the revised bid by Aditya Birla group owned UltraTech Cement for debt-ridden Binani Cement was recently approved by the National Company Law Appellate Tribunal (NCLAT).
Further from the reports, UltraTech Cement had revealed in a statement that its board has granted approval to UltraTech’s proposal at a meeting, which was held on 19 Nov 2018. As per the proposal, BCL would be formed into a wholly-owned subsidiary of UltraTech with effect from 20 Nov 2018.
Reports inform that the cement company has acquired the plants of BCL with a cumulative capacity of 6.25 MTPA (million ton per annum) in Rajasthan. The plants also included a split grinding unit and an integrated cement unit, with the total value of the deal being Rs 8,024 crore.
The company had mentioned that this acquisition provides it with access to very high quality limestone reserves. The subsidiaries of BCL in UAE and China stand transferred to UltraTech. This move has been mainly made owning to the synergies and factors which will result from it. These include optimization of costs, economies of scale, both in logistics and manufacturing, as well as a wider distribution network.
The company said that it is remarkably well positioned to improve the operations of BCL, through its unmatched experience and competence in the sector. To make it possible, the company has merged the acquired markets with its West zone and North zone operations, being led by Raju Anklesaria and Sudeep Grover.
Former Unit Head of Awarpur, G Balasubramaniam, has been appointed as Head of the integrated cement unit of BCL. The network of UltraTech has increased to 50 plants pan India with the addition of BCL’s plants, the company added.