Chennai-based cement major Chettinad Cement Corporation is all set to acquire Anjani Portland Cement.
According to reliable sources in the know, the finer details of the buy are complete and the deal is expected to be formalised soon.
It would give the Chennai-based company a significant presence in the Andhra Pradesh market.
With a turnover of ₹332 crore last year, Anjani Cements has over 1.2 million tonnes production capacity in its two plants in Nalgonda district of Andhra Pradesh. It also has plans for setting up a greenfield unit in Karnataka.
The company, which posted ₹3 crore loss in the last quarter, has a strong dealer and marketing network in the State.
The promoters of Anjani Cement have been in the sector for nearly three decades.
Chettinad Cement Corporation has integrated plants in Tamil Nadu at Puliyur, Karikkali and Ariyalur and also operationalised another plant in Kallur, Karnataka.
The company, which has an annual cement capacity of over 11.5 million tonnes in Tamil Nadu alone, has plans to add about 15 mt by 2015.
It also started the delisting process last year.
Meanwhile, the board of Anjani Portland had approved disinvestment of stake in its arms Vennar Ceramics and Hitech Print Systems.
The divestment was 49 per cent in the former and 100 per cent in the latter.
With this, the company does not have any other investments and is entirely in the core-segment of cements.
This might make the acquisition process easier.
The Hyderabad-based company’s scrip gained 4.92 per cent to end at ₹52.25 on Friday.