Aditya Birla group company UltraTech said its board will meet on Tuesday to consider a proposal from Samruddhi Cement to merge the cement business of group with itself.
The group, which had acquired UltraTech from engineering giant L&T in 2004, had planned to hive-off Grasim cement into Samruddhi, a wholly owned subsidiary of Grasim Industries. The demerged entity would be listed and then merged with UltraTech.
In a filing to the Bombay Stock Exchange UltraTech Cement said it “has received a consolidation proposal from Samruddhi Cement Ltd, a wholly owned subsidiary of Grasim Industries …A meeting of the board of the company has been convened on October 6 to consider the aforesaid proposal.”
Last week, Aditya Birla group company Grasim Industries said it would consolidate its cement businesses by merging Grasim cement with UltraTech, which together will have a capacity of 49 million tonnes per annum or 20 per cent of the country’s cement production.