Foreign players seen in race for Andhra cement
Andhra Pradesh-based Rain Commodities is said to be looking at either partially divesting its stake in its cement business to a strategic partner or entirely selling off the 1.5Mt cement unit, according to industry sources. Heidelberg, Italcementi, Lafarge and a major Indian player are said to be interested in the cement unit. Sources said that the cement unit is likely to get a valuation of around Rs 800-1,000 crore – reports The Economic Times.
Rain Commodities is a holding company and has strategic investments in other companies. It holds 100 per cent stake in Rain Industries (formerly known as Priyadarshini Cement), a producer of ordinary portland and blended cement in two locations in Andhra Pradesh, with a combined capacity of 1.5Mta. It markets its products in South India under the brand name ’Priya Cement’.
Sources said that HeidelbergCement could be ahead in the race. In March Indorama Cement became a 50:50 JV between SP Lohia Group’s Indorama and Heidelberg Cement Group of Germany.
Published under Cement News
