Priyadarshini Cements has proposed to acquire Hemadri Cements, nearly a year after taking over a cement unit from Nagarjuna Construction Company.
Hemadri Cements, a mini cement plant having a capacity of 2 lakh tonne per annum, is under adjudication of Board for Industrial and Financial Restructuring (BIFR).
Hyderabad-based Priyadarshini Cements submitted its proposal at BIFR's hearing over winding up of Hemadri unit held yesterday. But for the proposal, BIFR would have issued a winding-up order.
The Board has given six weeks to Priyadarshini Cements for negotiating with financial institutions over the expected concessions.
Since the promoters of Hemadri could not bring in the required funds as indicated in the proposal submitted to BIFR, the latter directed IDBI which is the lead institution to issue winding-up advertisement in August this year.
In response to the ad, Priyadarshini Cement showed interest in the ailing cement unit.
Priyadarshini Cements, in which Gujarat Ambuja has a little over 5 per cent stake, has a capacity of 12 lakh tonne per annum.
The company perceives that there is synergy in acquiring the Hemadri unit in view of its proximity. This apart, the cost of the acquisition could be lower than that of adding fresh capacity, sources said.
