The Amravati bench of the National Company Law Tribunal (NCLT) has approved Sagar Cements' proposal to acquire Andhra Cements for INR9220m (US$111.3m). On 16 February the Sagar Cements board approved a plan to nearly double the capacity of Andhra Cements to 3Mta with a capital outlay of INR4680m, according to Money Control.

Of the INR9220m proposed acquisition cost, Sagar Cements plans to raise a debt of INR6000m and equity of INR3220m. The acquisition gives Sagar Cements a 95 per cent stake in Andhra Cements with the public holding the remaining five per cent.

Andhra Cements operates two cement plants – the 1Mta Durga Cement Works in Dachepalli and the 0.6Mta Visaka Cement Works in Vishakapatnam – both of which are currently closed.