Birla Corp.'s Cement Maket Changing Cement Units Acquisition
If cement industry experts and cement insider reports are to be believed, the biggest acquisition that the MP Birla Group's cement division, Birla Corp. is to undertake may not materialize at all. The 96 year-old Kolkota based cement company, is all set to acquire 2 cement units of Lafarge India in one of the cement industry's biggest and market changing deals.The ongoing ownership dispute between the Birla family and the Lodhas, who now manage Birla Corporation, according to news reports, could create obstacles for the deal between Lafarge and the company.
The MP Birla group has a 63% share in the company, but Birla Corp. is currently managed by Harsh Lodha, son of the late RS Lodha, a chartered accountant, who was a close confidant of the MP Birla family.
The total installed cement capacity of Birla Corp. is 8.79 MPTA and with the acquisition of the Jojobera and Sonadih cement businesses from Lafarge India with a cement capacity of 5 MPTA approx., the company will have a total installed capacity of approx 14 MPTA. This will catapult Birla Corp. into the top 10 cement companies in the country and will be a game-changer for the eastern cement markets. Birla Corp will then be a dominant cement player in those geographical areas.
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