UltraTech to buy Emami

UltraTech Cement Ltd has emerged as the front-runner to buy the cement business of Emami Group in an all-cash deal worth INR6,500-7,000 crore (USD910-980m), according to a report by MintAsia.

The sale of Emami Cement Ltd has entered the final round, with Ambuja Cements Ltd, part of the LafargeHolcim Group, also understood to have made an offer for Emami.

The purchase of Emami Cement would enable UltraTech to penetrate eastern India and further consolidate its leadership of the domestic market.

Emami Cement has a total capacity of around 8Mtpa across three operational cement plants in eastern and central India, while UltraTech has a capacity of over 117Mtpa.

Reports indicate that Emami Cement may secure a value of USD105-110/t, which along with a 10 per cent premium for the eastern market monopoly, currently enjoyed by the company, could rise to US$120/t.

Emami Group has been looking to monetise its cement business, primarily to repay the group's debts and financial commitments.