ULTRATECH MOVES FOR 33% INDIA CEMENTS ACQUISITION

About UltraTech Cement

UltraTech is India’s leading producer of grey cement, ready-mix concrete, and white cement. Globally, excluding China, it ranks as the third largest cement company, boasting an annual production capacity of 152.7 million tonnes of grey cement. Additionally, it holds the unique distinction of being the only cement company worldwide with over 100 million tonnes of production capacity within a single country.

UltraTech Cement produces a range of building materials, including cement, lime, and plaster. In recent years, UltraTech Cement Ltd. has shown robust financial results. The FY24 report highlighted the company’s revenue reaching to ₹68,640.63 crore and an equity capital of ₹288.69 crore. 

UltraTech Cement Shares

UltraTech Cement has achieved a market capitalization of ₹3,43,053 crore, with a P/E ratio of 49. Over the past three years, the stock has delivered returns exceeding 50% to investors and has generated a remarkable 175% return over the last five years. Promoters maintain a significant stake, holding more than 55% of the total shareholdings.

UltraTech Cement Climate Goal

UltraTech is a founding Global Cement and Concrete Association(GCCA) member. The company supports the GCCA’s Climate Ambition 2050 and has agreed to adhere to the Net Zero Concrete Roadmap set by the GCCA. The company is working hard to reduce carbon emissions in its operations. It is the first company in India and the second in Asia to issue bonds linked to sustainability using U.S. dollars. 

About India Cement:

India Cements is the leading manufacturing company in India and a market leader in the South. India Cements has an annual production capacity of 14.45 million tonnes of grey cement, with 12.95 million tonnes produced in the South, primarily in Tamil Nadu, and 1.5 million tonnes in Rajasthan. By acquiring India Cements, UltraTech will enhance its production capacity by 9% and expand its market share by 2% across India. 

It aims to consistently create value for the shareholders by maintaining high transparency, accountability, and leadership standards in cement manufacturing for sustainability in all operations. India Cements reported net sales of ₹5,112.2 Cr. for FY24 and captured a 2.3%  market share in revenue. This shows how India Cement is growing positively in the industry. 

India Cement Shares

India Cement has achieved a market capitalization of ₹11,282 crore, and Foreign Institutional Investors(FIIs) hold more than 15% stakes. Over the past three years, the stock has delivered returns exceeding 80% to investors and has generated a remarkable return of over 300%  over the last five years. Promoters maintain a significant stake, holding 55% of the total shareholdings.

Conclusion:

UltraTech Cement's acquisition towards India Cement aims at gaining strategic advantages like market expansion, increased market share, cost efficiencies through synergies, access to new technologies and talent, diversification of products or services, enhanced competitive positioning, and potentially higher revenues and profits by leveraging combined resources and capabilities.