India’s Grasim Industries plans to absorb its unit UltraTech Cement to consolidate the group’s cement business under one arm, the Economic Times reported on Thursday, citing an investment banker.
The move will create India’s top cement firm, with a combined production capacity of 42Mta, overtaking ACC Ltd controlled by Holcim that will have 30Mt by 2010.
Diversified Aditya Birla Group, which runs Grasim and UltraTech, is looking at consolidating the cement business after engineering conglomerate Larsen & Toubro sold its minority holding in UltraTech, the newspaper said.
"Following L&T’s exit the Birlas are putting the consolidation initiative on the fast track. They will shortly bring the two companies under one roof," it quoted an unnamed banker as saying.