Vicat to take full control of Indian joint venture

Vicat is to take 100 per cent control of Vicat Sagar Cements after agreeing to buy out Sagar Cements from the joint venture company.

An agreement has been reached whereby Sagar Cements will sell its entire 47 per cent stake in the collaboration for INR66.68 per share (US$1.1). The company said it would use a part of the money to purchase some capital equipment for its Matampally plant, while the remaining amount would help fund organic and inorganic growth in south India.

Vicat Sagar Cements operates a 3Mta plant in north Karnataka which was launched at the end of 2012.

Together with its Bharathi Cement subsidiary, Vicat operates a total of 8Mta of capacity in India. In 2013, the group generated sales of €155m in India, up +12.7 per cent at constant scope and exchange rates. In the first quarter of 2014, sales in India were up +27.2 per cent at constant scope and exchange rates.

“This transaction enables Vicat to strengthen its position in a market that shows very strong potential,” the French cement major said in a statement.