Zuari Strikes Jv Deal With Ciments

The K K Birla group flagship Zuari Industries yesterday announced its decision to float a 50:50 venture with Ciments Francais of France. The Birla company's cement business will now be shifted to the joint entity.

The Zuari Industries board has decided to transfer the cement division's entire assets and liabilities to the joint venture, Zuari Cement Ltd.

As the enterprise value of the venture has been pegged at Rs 740 crore, the foreign partner's contribution may come to around Rs 370 crore.

However, the Rs 851-crore Zuari Industries will continue with its fertilisers, agro-products, cements, furniture and steel businesses. Zuari Industries has recently raised the capacity of its cement plant in Cuddapah district of Andhra Pradesh at a cost of Rs 357 crore.

 

The K K Birla group is floating another joint venture for Texmaco Ltd, from which the cement division was transferred to Zuari Industries nearly six years ago for Rs 135 crore.