Ambuja buys 85% stake in Nepal's Dang Cement

Ambuja Cements today said it has acquired 85% stake in Nepal's Dang Cement Industries for Rs 19.13 crore.

In a stock exchange filing, the domestic cement maker said it was also in the process to acquire an additional 5% stake in the Nepalese firm for Rs 1.13 crore.

Dang Cement Industries holds limestone mining lease in Nepal. Limestone is a key raw material for manufacturing of cement.

"At present, the company (Dang) is not carrying out any business activity," the Ambuja statement said.

With the acquisition, Dang Cement Industries has become an Ambuja subsidiary.

Swiss major Holcim holds more than 50% stake in Ambuja Cements. The global cement major had in 2006 acquired the management control of Ambuja Cements, founded by Narotam Sekhsaria in 1983 with a partner, Suresh Neotia.

Ambuja Cements currently has 25 million tonne per annum capacity and is in the process of taking it to 27 million tonne within this year.

Holcim also holds majority stake in ACC, which has 27 million tonne installed capacity now. ACC is also increasing its capacity to 30 million tonne.

Ambuja Cements' scrip today closed at Rs 142.2 a share on the Bombay Stock Exchange, down 0.11% over the previous closing.