Nuvoco Vistas Corporation Limited (Nuvoco), part of the Ahmedabad-based Nirma Group, has signed a binding agreement with the Emami Group to buy 100% equity stake in Emami Cement Limited (ECL) for an enterprise value of ₹5,500 crore.
Emami Cement Ltd. operates one integrated cement plant in Risda, Chhattisgarh and grinding units in Bihar, West Bengal and Odisha with a total installed capacity of 8.3 million tonnes per annum.
The company has mining leases in Chhattisgarh, Rajasthan and Andhra Pradesh.
With this acquisition and ongoing expansion, Nuvoco will become one of the leading cement players in the country and specifically in the East.
This will bring its total cement capacity in eastern, northern and western India to 23.5 million tonnes (which includes the ongoing capacity expansion project at its Jojobera plant) and over 60 ready-mix plants. Commenting on the deal, Hiren Patel, chairman, Nuvoco, said, “This acquisition is a momentous and transformational step in Nuvoco’s journey to becoming a major building materials company in India.
“Emami Cement will enable us to take our cement business to the next level and continue to serve our customers with innovative and high-quality products that they trust.” The transaction is subject to the customary approvals and is expected to be consummated in next three-four months.
Manish Goenka, director, Emami Group said, “This transaction is an important step in our group’s stated objective of becoming debt-free and with this transaction, we will substantially achieve this objective.
“We are proud of Emami Cement’s achievements in a short span of time and we strongly believe that in Nuvoco, we have found the right acquirer who will be able to develop the business further in the interest of all stakeholders, Mr. Goenka added
Aditya Agarwal, director, Emami Group, said, “Emami Cement has successfully established a very strong brand equity in the market for its highest standard of operation and high-quality products, helping us to get a good value. We strongly believe the Nuvoco and Nirma Group will continue from here and strengthen the business further.”
Emami Ltd. shares closed down 1.32% to ₹302.95 on the BSE in a firm Mumbai market on Thursday, valuing the company at ₹13,752 crore.