Heidelberg Cement to sell Raigad grinding unit to JSW Group
Heidelberg Cement India today decided to sell its 0.6 million tonnes per annum (mtpa) cement grinding facility in Raigad to JSW Group "as a going concern on slump sale basis" for an undisclosed sum.
Heidelberg Cement India today decided to sell its 0.6 million tonnes per annum (mtpa) cement grinding facility in Raigad to JSW Group "as a going concern on slump sale basis" for an undisclosed sum.
"The parties are currently negotiating and finalising the terms of the business transfer agreement. The transaction will be finalised only after obtaining all relevant approvals including that of shareholders," Heidelberg Cement India said in a statement.In a filing to the BSE, JSW Ispat said the acquisition would enable it develop a stable outlet for evacuation of slag. Both the firms, however, did not mention the deal size. A Heidelberg Cement India official said the value of the deal was yet to be arrived at which may take two months time to finalise.The company said it had been exploring possible ways of improving margins of the grinding unit including possibility to scale up operations, but the same was not feasible due to infrastructural bottlenecks.Also read: Mkt won't see deep downside; buy cement: Pashupati Advani"The disposal is in line with the company's philosophy of divesting less strategic assets with lower margins to focus on more strategic and key operations in Central India where the company had recently expanded its cement capacity from 2 to 5 mtpa," company CEO and MD Ashish Guha said.However, the company maintained that India would continue to be a high growth market and the Heidelberg Cement Group remains committed towards its growth plans for the country and would look at all organic and inorganic paths of growth."The cement grinding facility has an installed capacity of 0.60 mtpa and its acquisition would enable the company develop a stable outlet for evacuation of slag apart from creating additional grinding facility for consumption/disposal of slag," JSW Ispat said in a BSE filing. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
