Votorantim Cimentos sells 75% share in Shree Digvijay Cement

Votorantim Cimentos sells 75% share in Shree Digvijay Cement
13 November 2018

Votorantim Cimentos has agreed the sale of its 75 per cent stake in Shree Digvijay Cement Co Ltd (SDCCL) to Indian private equity firm True North. The sale requires the completion of a mandatory open offer to the minority shareholders of SDCCL.

The acquisition would add to True North's other investments in the building materials sector namely, RDC Concrete (“RDC”), a manufacturer of ready-mix concrete and Robo Silicon (“Robo”), a manufacturer of construction aggregates.

Srikrishna Dwaram, partner at True North, said: "Votorantim Cimentos has contributed significantly to the strategic initiatives taken at SDCCL over the last few years. This has strengthened its competitive positioning and has greatly improved its operating and financial performance."

In 2017-18, Shree Digvijay Cement posted a net profit of INR133.7m (US$1.84m) on a turnover of INR4.24bn, compared with a net loss of INR80.5m in the previous financial year. In 2012, when the company was taken over by the Brazilian promoters, the net profit was INR509.3m on a turnover of INR4.29bn, reports Business Standard.

Published under Cement News