The India Cements (ICL), it may be recalled, came under the fold of Birla-owned Ultratech late last year when promoter N.Srinivasan and his family exited the company by selling their stake.
The total value of the proposed transactions with Ultratech during 2025-26 is estimated in the region of around Rs. 6,350 crore.
“The company deals with UltraTech in the ordinary course of business and on an arm’s length basis for various operational transactions required for its businesses to achieve its objectives. The expertise, complementary strengths and competencies and facilities available between the companies are leveraged for enhancing operating efficiency through these transactions. The transactions with UltraTech will result in maximizing synergies with the company and create value for all stakeholders,” ICL said in a notification seeking shareholders’ approval for these transactions.
The proposed transactions will involve purchase and sale of items such as clinker, fly-ash, gypsum, ready-mix concrete, limestone, power and the like. Further, these proposed transactions also provide for corporate guarantee to the tune of Rs 500 crore by UltraTech, inter-corporate deposit to the tune of Rs 1,000 crore. “Inter-corporate deposits will be availed for the purpose of meeting working capital requirements and other corporate use,” it said.
“An independent external review was conducted covering the proposed transactions with UltraTech. The review exercise concluded that the pricing policy of the transactions are adhering to the arm’s length principle,” it said.
A few days ago, the Birla-controlled ICL said that it had successfully completed and stabilised a de-bottlenecking initiative at Banswara Cement Works, Rajasthan. This has resulted in an increased production capacity of 0.3 MTPA. “This initiative will result in the company’s grey cement manufacturing capacity increasing to 14.75 MTPA,” the company said in a stock exchange filing. In 2009, India Cements acquired controlling interest in a listed company — Indo-Zinc Ltd — which later became Trinetra Cement Ltd and a subsidiary of India Cements. In January 2011, Trinetra commissioned its green-field integrated cement plant known as Mahi Cement Plant at Banswara in Rajasthan with a capacity of 1.5 MTPA at a cost of Rs 600 crore. In April 2017, NCLT sanctioned the scheme of amalgamation of Trinetra Cement with India Cements. This resulted in bringing all the cement assets under one roof.Commissioned in January 2011, Banswara Cement Plant was originally set up by the company’s subsidiary Trinetra Cement (merged in 2017) in Banswara district of Rajasthan with a capacity of 1.5 MTPA. With Banswara Plant, India Cements successfully entered the northern and western by launching its popular brand Coromandel Cement riding on the popularity of IPL team CSK and iconic captain MS Dhoni, who is popularly known as Mahi.