UltraTech Cement said on Wednesday its board has approved a proposal to incorporate Binani Cement Ltd (BCL) as it a wholly-owned subsidiary.
The National Company Law Appellate Tribunal (NCLAT) last week had approved the revised bid of Aditya Birla group firm UltratTech Cement for debt-ridden Binani Cement.
"The board of directors of UltraTech at its meeting held on the November 19, has approved UltraTech's proposal to form Binani Cement Limited (BCL) into a wholly-owned subsidiary of UltraTech from the November 20," UltraTech Cement said in a statement.
UltraTech has acquired BCL's plants totalling 6.25 MTPA (million tonne per annum) in Rajasthan, inclusive of an integrated cement unit and a split grinding unit at a value of Rs 80.24 billion.
"This acquisition gives the company access to superior quality limestone reserves. BCL's subsidiaries in China and UAE stand transferred to UltraTech," the company said.
The move has been largely made on account of these factors and synergies that will stem from it. These include economies of scale, optimization of costs, both in manufacturing and logistics, coupled with a wider distribution network, it added.
UltraTech is extremely well positioned to turnaround BCL's operations, given its competence and unmatched experience in this sector, the company said adding to take this forward it has combined the acquired markets with its North zone and West zone operations, which are led by Sudeep Grover and Raju Anklesaria.
It further said that G Balasubramaniam, formerly Unit Head, Awarpur, has moved as Head of BCL's integrated cement unit.
With the addition of BCL's plants, UltraTech's network has grown to 50 plants pan India, the statement said.
UltraTech's overall capacity currently is 98.75 mtpa with an additional 4 MTPA under commission.