Get All Access for $5/mo

Nirma Group Arm To Buy Emami's Cement Business In INR 5,500 Crore Deal With the merger, Nuvoco said it would become one of the biggest players in the cement industry in India, especially in the east. The deal will expand its total cement capacity in eastern, northern and western India to 23.5 million tonnes.

By Debroop Roy

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Nuvoco Vistas Corp

Indian conglomerate Emami Group will sell its cement business to Nuvoco Vistas Corp, an arm of Nirma Group, in a deal valued at INR 5,500 crore, Nuvoco said on Thursday.

Emami Cement currently operates one integrated cement plant in Risdah, Chhattisgarh and grinding units in Bihar, West Bengal and Odisha with a capacity of 8.3 million tonnes per year. The company has mining leases in Chhattisgarh, Rajasthan and Andhra Pradesh.

Kolkata-based Emami Group, which has interests ranging from consumer goods to pharma retail, will be selling all of their shares in the business as part of the deal. Emami's promoters had sold a cumulative 20 per cent stake last year in two tranches, in its fast moving consumer goods unit, the BSE-listed Emami Ltd, as part of its plans to cut down debt.

Combined Entity

This acquisition from Nuvoco comes about 4 years after Nirma bought the company from Switzerland-headquartered LafargeHolcim for $1.4 billion. Nuvoco Vistas, the new name of the company, was registered in 2017. Apart from cement, the company also sells ready mix concrete and aggregates, and other value added products.

With the Emami Cement merger, Nuvoco said it would become one of the biggest players in the cement industry in India, especially in the east. This will bring its total cement capacity in eastern, northern and western India to 23.5 million tonnes (including a capacity expansion plan in one of its plants) and over 60 ready-mix plants.

The combined entity's operations will span three facilities in Chhattisgarh, two each in Rajasthan and West Bengal, and one each in Bihar, Jharkhand, Odisha, and Haryana. Nuvoco's cement sales will spread across 12 states.

"This acquisition is a momentous and transformational step in Nuvoco's journey to becoming a major building materials company in India delivering superior performance," Nuvoco chairman Hiren Patel said in a statement. Ahmedabad-based Nirma makes a wide variety of products including cosmetics and detergents. It has over 12 manufacturing facilities in India and the US and sells its products across 6 continents.

Nuvoco said the deal was subject to approval by the Competition Commission of India.

Debroop Roy

Former Correspondent

Covering the start-up ecosystem in and around Bangalore. Formerly an energy reporter at Reuters. A film, cricket buff who also writes fiction on weekends.
Entrepreneurs

Academic Excellence Is Not Necessary for Success in Life: Hear from the Founder of this Exciting New Digital Education Platform.

Many educational platforms are emerging these days to help people qualify for various types of entrance examinations. But what about the students who don't want to take the traditional path, the ones who don't rank among the top 10 in the classroom yet still aim high in life?

Business News

How to Build a Successful Startup, According to an Investor Who Made Early Bets on Twitter, Lyft, and Twitch

He's found a few patterns after nearly two decades of investing in startups.

Business News

Jake Paul Says He's 'Scared' to Fight Mike Tyson, But This Mindset Hack Helps Him 'Embrace' Fear and Make Millions: 'Let It Fuel You'

The social media star and "W" founder spoke to Entrepreneur about his latest ventures in boxing and business.

Marketing

10 Effective Growth Marketing Hacks and Strategies for Your Startup

Working at a startup can feel like building a plane while you're trying to take off. Use these ten marketing tips to effectively grow and sustain your startup.