Image Source: Bajaj Broking
UltraTech Cement Ltd, the flagship company of the Aditya Birla Group, has completed the acquisition of 100% equity share capital of Wonder WallCare Private Limited, marking a significant strategic move to bolster its value-added products segment. The board of UltraTech approved the deal at an enterprise value of up to ₹235 crore, with the acquisition involving the purchase of 6.42 crore equity shares of ₹10 each. The transaction is expected to close within 90 days, subject to regulatory approvals and compliance.
Key Highlights:
Strategic Expansion: The acquisition gives UltraTech access to a state-of-the-art manufacturing facility for wall putty and related products at Rajsamand-Nathdwara, Rajasthan. With a capacity of 6 lakh metric tonnes per annum, the plant—constructed in 2022-23—is one of India’s largest single-location putty manufacturing sites and is situated near high-quality raw material reserves and UltraTech’s existing facilities.
Market Impact: Wonder WallCare recorded a turnover of ₹78.61 crore in FY24. This acquisition will significantly enhance UltraTech’s production capacity in the rapidly growing and fragmented wall putty market, strengthening its leadership in value-added products.
Synergy and Growth: The move aligns with UltraTech’s aggressive expansion strategy, following recent acquisitions in the cement sector and ongoing capacity additions. The company aims to surpass 200 million tonnes in production capacity by 2026-27.
Shareholder Response: The announcement was met with a positive market reaction, with UltraTech shares rising nearly 3% on the BSE and NSE, reflecting investor confidence in the company’s growth trajectory and strategic vision.
Future Outlook: The acquisition positions UltraTech to further penetrate the value-added segment, leverage operational efficiencies, and capitalize on India’s booming construction and infrastructure sectors.
With Wonder WallCare set to become a wholly-owned subsidiary, UltraTech Cement is poised to consolidate its dominance and drive innovation in the building materials industry.
Sources: Economic Times, The Hindu Business Line, Business Standard, CNBC-TV18, UltraTech Cement, Groww
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