Irish building materials major CRH is likely to acquire the cement arm of the Shriram Group, Sree Jayajothi Cements, three sources have told the Economic Times of India.
The deal is likely to be announced “soon” according to one of the sources, adding that the “enterprise value of Sree JayaJothi Cements has been pegged at around INR1500 crore.”
CRH is expected to pick up the stake through its Indian unit My Home Industries, a joint venture it has operated since 2008 with the My Home Group. Earlier this week Shriram confirmed that it is in talks with a number of potential investors, including CRH.
Sree Jayajothi Cements operates an integrated works in Kurnool district, Andhra Pradesh with a clinker capacity of 2Mta and a cement grinding capacity of 3.2Mta, according to information on the company’s website.