Sagar Cements has announced the complete acquisition of grinding unit owned by M/s Toshali Cements for Rs 60 crore (9 million USD)
“The board has accorded its ‘in principle’ approval for the acquisition of the entire assets in the grinding unit of 181,500 tons per annum capacity in Bayyavaram, Vizag district, Andhra Pradesh, owned by M/s Toshali Cements, Hyderabad, at a cost of around Rs 60 crore (including transaction cost),” Sagar Cements said in a BSE filing.
Post acquisition, the company proposes to increase the capacity of the said unit to 300,000 tons per annum by optimizing the equipment already available with the company by infusion of funds to the extent of around Rs 6 crore (0.9 million USD)
The acquisition will enable the company to save its logistic cost and to introduce slag cement to cater markets in Visakhapatnam, Viziangaram, Srikakulam and parts of Orissa, it added.
The transaction is expected to be completed by September 30, 2016, subject to regulatory approvals as may be required by the company to commence its grinding operations in the said unit.