Binani Cement’s acquisition may make UltraTechlead
Acquisition of Binani Cement, subject to approval, is poised to make UltraTech Cement the market leader in the north Indian cement market overtaking the current market leader Shree Cement.
According to sector analysts, Shree Cement’s current market share in the country’s northern zone is around 22 per cent while UltraTech’s share is 19 per cent. In case of a successful takeover, UltraTech’s market share will climb higher to touch around 26 per cent. In turn, it will provide the Aditya Birla Group company greater power on pricing, which in turn, is expected to boost its margins.
Nevertheless, in Rajasthan, Shree Cement will continue to lead the market with 18 million tonnes per annum (mtpa) capacity while a successful takeover will boost UltraTech’s capacity to just over 14 mtpa. The latter’s total installed capacity in the northern region is 17.6 mtpa.