UltraTech Cement Limited is an Indian multinational cement company based in
Mumbai
Mumbai ( ; ), also known as Bombay ( ; its official name until 1995), is the capital city of the Indian state of Maharashtra. Mumbai is the financial capital and the most populous city proper of India with an estimated population of 12 ...
. It is the largest manufacturer of grey cement,
ready-mix concrete (RMC) and white cement in India, and the fifth largest in the world, with an installed capacity of 152.70 million tonnes per annum and 119 million tonnes per annum sales volume.
History
UltraTech Cement traces its origins to 1983 when it began as the cement division of
Larsen & Toubro
Larsen & Toubro Limited, abbreviated as L&T, is an Indian multinational conglomerate, with interests in industrial technology, heavy industry, engineering, construction, manufacturing, power, information technology, defence and financial se ...
(L&T), being sold under the "L&T Cement" brand. In 2000, L&T decided to sell its cement business and incorporated a wholly-owned subsidiary to house the cement assets.
In 2001,
Reliance Industries
Reliance Industries Limited is an Indian multinational conglomerate headquartered in Mumbai. Its businesses include energy, petrochemicals, natural gas, retail, entertainment, telecommunications, mass media, and textiles. Reliance is the ...
sold its entire 10% stake in L&T to
Grasim Industries
Grasim Industries Limited is an Indian manufacturing company based in Mumbai. Since its inception in 1947 as a textile manufacturer, Grasim has diversified into textile raw materials like viscose staple fiber (VSF) and viscose filament yarn, ...
. At the time, L&T was the largest cement manufacturer in India, while Grasim was the third-largest. In 2002, Grasim would increase its stake in L&T to 15% and its attempt to launch an open offer to acquire an additional 20% stake was stayed by the
SEBI
The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the administrative domain of Ministry of Finance within the Government of India. It was established on 12 April 1988 a ...
over a possible violation of takeover rules.
In 2003, L&T announced that it would
demerge
A demerger is a form of corporate restructuring in which the entity's business operations are segregated into one or more components. It is the converse of a merger or acquisition.
A demerger can take place through a spin-off by distributing or ...
the cement business into a company called UltraTech CemCo. As part of the demerger plan, Grasim agreed to acquire an 8.5% stake in UltraTech CemCo from L&T, make an open offer to acquire another 30%, and transfer its 15% stake in L&T (residual engineering company) to L&T Employees Welfare Foundation. The deal was executed in 2004, with Grasim obtaining management control of UltraTech CemCo (later renamed as UltraTech Cement) with its 51% stake, while L&T retained 11.5% shareholding.
Mergers and acquisitions
2013 - Acquired
Jaypee Group
Jaiprakash Associates Limited, commonly known as Jaypee Group, is an Indian conglomerate headquartered in Noida, Uttar Pradesh, with interests in engineering, construction, power, real estate, hospitality, IT, sports and education (non-pro ...
's Gujarat cement unit for 3,800 cr.
2017 - Acquired
Jaiprakash Associates
Jaiprakash Associates Limited, commonly known as Jaypee Group, is an Indian Conglomerate (company), conglomerate headquartered in Noida, Uttar Pradesh, with interests in engineering, construction, power, real estate, hospitality, IT, sports ...
's six integrated cement plants for 16,189 cr.
2018 - Entered into a scheme of arrangement with Century Textile and Industries to demerge Century's cement business into ultratech.
Nov 2018 - Acquired
Binani Cement for 7,266 cr.
Dec 2023 - Acquired Cement grinding assets of Burnpur Cement Ltd. From
Punjab National Bank
Punjab National Bank alias PNB is an Public sector banks in India, Indian government bank based in New Delhi. It was founded in May 1894 and is the List of banks in India, second-largest public sector bank in India in terms of its business volum ...
's Asset Reconstruction Company's auction for cash consideration of .
See Also
*
Ambuja Cements
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Shree Cement
*
Cement industry
*
Aditya Birla Group
References
External links
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{{BSE Sensex
Cement companies of India
Manufacturing companies based in Mumbai
Manufacturing companies established in 1983
Aditya Birla Group
NIFTY 50
Indian brands
BSE SENSEX
1983 establishments in Maharashtra
Indian companies established in 1983
Companies listed on the National Stock Exchange of India
Companies listed on the Bombay Stock Exchange
Larsen & Toubro