INDIA BUSINESS WORLD - March 16th - March 31st - 2008
IRISH GROUP PICKS 50% IN ANDHRA CEMENT CO FOR RS 1,840 CR
IRISH building materials group CRH has announced the acquisition of a 50% stake in Hyderabad-based cement company, My Home Industries (MHIL) for 290 million euros (Rs 1,840 crore).
Promoted by J Rameswar Rao, closely-held MHIL operates three cement plants in Andhra Pradesh’s Nalgonda district with a total capacity of 3.2 million tonnes (MT).
CRH and the existing owners will jointly manage MHIL with equal board and management representation. The transaction is expected to be completed in the second quarter of 2008.
Production capacity will rise to 4.2 MT once the grinding plant under construction near Visakhapatnam is completed in early 2009, according to a CRH statement.
“MHIL is one of the most modern cement producers in India with excellent reserves and a strong management team and is a market leader in the dynamic Andhra Pradesh market. As a first investment in India, we are delighted to be associated with such a strong company and look forward to developing the business with our partner as the Indian economy expands,” the statement quoted CRH chief executive Liam O’Mahony as saying.
|
