Ultratech Cement Makes Binani Its Subsidiary

A day after the apex court cleared its bid for Binani Cement; Ultratech Cement announced that the Braj Binani group flagship company has become a subsidiary of Ultratech.

“In terms of the Company’s Resolution Plan approved by the National Company Law Appellate Tribunal, the Board of BCL has been re-constituted and BCL has become a wholly-owned subsidiary of the Company with effect from 20th November, 2018,” Ultratech said in a notification to the Bombay Stock Exchange.

Through its offer of `7,950 crore for the asset, Ultratech has gotten the ownership of a 6.25 MT plant in the state of Rajasthan that comprises an integrated cement unit with capacity of 4.85 MT and a 1.4 MT split grinding unit. Binani Cement has also expanded its operations to Dubai and China and apart from India, enjoys major market share in countries like UAE, Sudan, South Africa, Tanzania, Madagascar and Namibia, according to information on its website.

India’s largest cement maker Ultratech has been on an acquisition spree. Last year it had added 21.2 MT of ready capacity by acquiring six integrated plants of Jaypee Associates. This year in May, the company had absorbed the cement business of Century Textiles and Industries by way of a demerger of the latter’s business through a share swap. With Binani becoming its wholly-owned subsidiary, Ultratech has now reached a capacity of more than 116 MT and has further strengthened its presence in the western market of Rajasthan.