Emami to sell cement business to Nirma group for Rs 5500 crore
The Kolkata-headquartered conglomerate announced on Thursday that Emami Group is going to sell its cement business to Nuvoco Vistas Corp. Ltd, part of the Nirma Group for an enterprise value of Rs 5,500 crore.
The company has entered into a binding agreement with the Nirma group for divesting its 100% equity. Emami Cement, which operates in Chhattisgarh, Risdah, West Bengal, Odisha, and Bihar with total capacity is 83 lakh tons annually.
Emami Group Director Aditya Agarwal said that “We strongly believe that the Nirma Group will strengthen the business further,”.
Manish Goenka, Emami Group Director said: “This is an essential step in becoming debt-free objective, and we will achieve this objective”. It is likely to be concluded in the next 3-4 months.
Hiren Patel, Chairman of Nuvoco said “this transaction will enable us to take our cement business to the next level” and it will bring total cement capacity in western, eastern, and northern India to 23.5 million tonnes.
Nirma Group acquired Lafarge India’s cement business at $1.4 billion in 2016. This is Nirma Group’s second cement acquisition in east India. In 2018, UltraTech Cement Ltd acquired Binani Cement, the bankrupt cement maker at ₹7,600 crore. Reliance Infrastructure Ltd sold its cement business to Birla Corp in 2016. Emami group’s plan to become debt-free by selling the cement business.