The Competition Commission of India (CCI) has approved UltraTech Cement Limited’s acquisition of a significant stake in The India Cements Limited, marking a major consolidation in the Indian cement industry. The approval was granted on December 20, 2024, for UltraTech Cement to acquire a 32.72% stake in India Cements from its promoters and associated entities, as well as up to an additional 26% through an open offer.
UltraTech Cement, a subsidiary of Grasim Industries Limited, is one of India’s leading manufacturers of grey cement, white cement, ready-mix concrete, clinker, and building products. The company is also involved in providing various building solutions across the country. India Cements, similarly, is a major player in the cement industry, with its core business focusing on the manufacture and sale of grey cement and ready-mix concrete.
The deal, which involves UltraTech’s purchase from the promoters of India Cements and Sri Saradha Logistics Private Limited, is seen as a strategic move to strengthen UltraTech’s market position and expand its footprint in India’s cement industry. The open offer will allow additional stakeholders to acquire up to 26% of India Cements, further consolidating UltraTech’s hold on the company.
This acquisition approval comes as part of ongoing industry consolidation and is expected to enhance operational synergies and boost competitiveness in the sector. A detailed order from the CCI on this decision will be issued at a later date, providing further insights into the regulatory body’s evaluation of the merger.