Economy & Market
Dalmia Bharat buys Adhunik Cement for Rs 560 cr
With the acquisition of Rs 560-crore Adhunik Cement, Dalmia Bharat Enterprises is set to strengthen its presence in the North East. Dalmia is also a cement manufacturer. This is Dalmia Bharat's second acquisition in the region after it took a 50 per cent stake earlier this year in Calcom of Assam.
Dalmia Bharat hopes to establish over 3.5 million tonne of production capacity in the region where the demand is estimated at about 6 million tonne a year and growing at a healthy 12-15 per cent, says
Puneet Dalmia, Managing Director.
The company has announced on the NSE that its subsidiary Dalmia Cement (Bharat) has signed a definitive agreement to buy the entire share capital of Adhunik Cement in Meghalaya for Rs 560 crore. Adhunik operates a 1.5 million tonne a year cement plant, which is one of the largest in the North East.
Dalmia said it is operating at about 40 per cent capacity. The acquisition is to be funded through internal accruals and reserves. Dalmia Bharat's other acquisition in the region, Calcom, has an 8,00,000 tonne a year cement plant which is to be expanded to about 2 million tonne a year.
The company's two acquisitions in the North East mean an equity exposure of over Rs 800 crore and an additional Rs 1,000 crore in the form of debt and other liabilities.