Nuvoco Vistas Corporation, building materials company and part of the Nirma Group, has entered into a share purchase agreement with Emami Group for the acquisition of 100% shareholding of Emami Cement (ECL) for an enterprise value of Rs 5,500 crore.
The proposed transaction is subject to approval by the Competition Commission of India (CCI).
Hiren Patel, chairman – Nuvoco, said, “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”.
ECL operates one integrated cement plant in Risdah, Chhattisgarh; and grinding units in Bihar, West Bengal and Odisha with a total installed capacity of 8.3 million tonnes per annum; and with mining leases in Chhattisgarh, Rajasthan and Andhra Pradesh.
With the merger of the Nirmax business in Rajasthan and completion of this acquisition; 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 in its Jojobera plant) and over 60 ready-mix plants.
The combined operations will span 3 facilities in Chhattisgarh, 2 each in Rajasthan and West Bengal, and 1 each in Bihar, Jharkhand, Odisha, and Haryana. Nuvoco’s cement sales will spread across 12 states: Chhattisgarh, Odisha, West Bengal, Bihar, Jharkhand, Rajasthan, Madhya Pradesh, Gujarat, NCR region, Punjab, Uttar Pradesh and Haryana.