India: UltraTech-Century merger talk heightens

India: UltraTech-Century merger talk heightens
Published: 28 July 2015


UltraTech Cement Ltd and Century Textiles & Industries Ltd are in talks with their respective dealers to synchronise their cement distribution network, trade sources told Cogencis.
   
UltraTech and Century Textiles dealers have been told that a combined sales approach could be in place by October. The move has led to resurfacing of talk that Century Textiles' cement division will be merged with UltraTech.
   
The Aditya Birla group-owned UltraTech Cement and the BK Birla-owned Century Textiles did not comment on the development.
   
"Most of the big dealers sell both the brands. So it would make sense to have a common dealership structure. It might very well happen that all the dealers get the same long-term schemes after September when the merger happens," a Century Textiles cement dealer said.
   
A merger of Century Textiles' cement capacity with UltraTech will raise the latter's capacity by 13Mta to 78Mta, and further entrench its dominant position in the market.