India's UltraTech Becomes the Fourth Largest Cement Manufacturer Outside China

   Following the sale of three cement plants to India's Orient Cement, the Jaiprakash consortium continues to sell its cement assets. Last week, India's UltraTech announced that it had reached a deal with Jaiprakash to acquire six integrated cement plants and five cement grinding stations in Jaiprakash. The deal is worth $2.5 billion. The transfer plan was approved at a meeting of UltraTech Cement's Board Plan Executive Committee. The deal involved cement plants in Jaiprakash in Himachal Pradesh, Uttar Pradesh and Uttarakhand. In Madhya Pradesh and Andhra Pradesh, 21.2 million tons/year of cement production capacity is involved.

   "This move expands UltraTech's geographic market and places UltraTech in a high-growth region of India," said Kumar Mangalam Birla, Chairman of UltraTech. The acquisition will also enhance UltraTech's synergies in manufacturing, distribution and logistics, he added.

   After the acquisition, UltraTech will have 18 integrated cement plants, 1 independent clinker production plant, 25 grinding stations and 7 bulk terminals, which will also increase UltraTech's production capacity of ordinary Portland cement to 93 million tons per year. UltraTech said the deal also made UltraTech the fourth largest cement producer in the world outside China and consolidated and confirmed UltraTech's position as the largest cement producer in India.