The board of directors of UltraTech Cement and Samruddhi Cement Limited, a wholly-owned subsidiary of Grasim Industries, on Sunday approved the merger of Samrudhi with UltraTech. The appointed date for the merger is July 1, 2010.
Following the merger, UltraTech would become the 10th-largest cement company in the world, with a capacity of 49 million tonnes per annum, and will garner 20 per cent market share in India, a company release said.
Samruddhi shareholders will receive four shares of UltraTech for every seven shares held in Samruddhi. On completion of the merger, UltraTech’s expanded equity capital will be held 60.3 per cent by Grasim and 39.7 per cent directly by other shareholders of UltraTech and Samruddhi, the company said.
Speaking on the merger, Aditya Birla Group chairman, Kumar Mangalam Birla, said, “The merger will achieve the group’s objective of consolidating its cement business into a single entity, thereby creating a platform that will help in pursuing aggressive growth going forward.”
The merged entity will have 504 mega watt captive thermal power plants and 11.7 million cubic meters of ready mix concrete across 68 plants.
Additionally, UltraTech will add speciality products including white cement and wall-care putty to its existing portfolio.