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UltraTech has successfully completed the acquisition of the cement business of Kesoram Industries Limited (KIL). Effective 1st March, 2025, the cement business of KIL stands transferred to UltraTech Cement Limited.
Earlier on 25th February 2025, the Board of Directors of UltraTech Cement Limited had declared the scheme to demerge the cement business of KIL into UltraTech to be effective from 1st March, 2025. In November 2023, KIL had decided to demerge its ‘Cement Business’ and had approached UltraTech Cement Limited in relation to the same.
The Board of Directors of UltraTech, after considering the recommendation and report of the Audit Committee and the Committee of Independent Directors, at its meeting held on 30th November 2023, considered and approved a Composite Scheme of Arrangement between Kesoram, UltraTech and their respective shareholders and creditors, in compliance with sections 230 to 232 and other applicable provisions of the Companies Act, 2013. In terms of the Scheme, the cement business of Kesoram was to be demerged into UltraTech.
The cement business of KIL consists of 2 integrated cement units at Sedam (Karnataka) and Basantnagar (Telangana) with a total cement production capacity of 10.75 mtpa. Out of this total capacity, 8.50 mtpa is clinker backed and 2.25 mtpa is surplus grinding capacity. The cement business also has a 0.66 mtpa packing plant in Solapur, Maharashtra. The demerger of the cement business of KIL into UltraTech helps UltraTech enhance its geographic reach in India's fast-growing Southern markets and unlock synergies in manufacture and distribution process and logistics alignment, leading to economies of scale and creation of efficiency by reducing time to market and benefiting customers.
With the addition of 10.75 MTPA of grey cement capacity of KIL, UltraTech has now reached a total capacity of 183.06 MTPA. The acquisition brings UltraTech a step closer to its stated goal achieving 200 mtpa cement capacity.
