Ultratech owner Kumar Mangalam Birla is now eyeing Orient Cement Ltd to take on Adani in the cement sector. Birla: The promoters of Orient Cement to buy this company from his uncle C.K. Talking to Birla. According to sources, integration efforts in the region have gained momentum after the resumption of talks in recent weeks.
According to the Economic Times, Kumar Birla’s fresh bid to buy Orient is seen as an attempt to beat Adani Cement and strengthen Ultratech’s position in the southern and western markets, particularly in Maharashtra and Telangana, after buying a 23% stake in India Cement late last month.
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Adani Cement is the second largest cement company in India.
Adani Cement controls the second largest cement capacity in India. The Adani Group has been in talks with CK Birla since late last year, but is said to have backed down on the valuation. An Ultratech spokesperson was not available to comment on this new update. Orient MD and CEO Deepak Khetrapal denied that any discussions were taking place. Call it fantasy.
UltraTech offers
The Birla family and private investors hold a promoter stake of 37.9% in Orient Cement. The market value of the company is Rs. 6,290.50 crore, which in October was Rs. 3,878 crore has almost doubled. Per share of Ultratech Rs. 350-375 is said to be offered at a price of Rs. 307 is 22% more than the current market price. Shares of Orient Cement have jumped 45% in the past month. On July 1 it was Rs. 329 reached an all-time high.
Last month Adani Group acquired South based Pena Cement through Ambuja Cement. In 2019, UltraTech acquired the cement assets of Century Textiles and in November 2023 the cement assets of Kesoram Industries through a share swap.