The Committee of Creditors (“CoC”) of Binani Cement Limited (“BCL”) constituted in accordance with the provisions of the Insolvency and Bankruptcy Code 2016 (“Code”), in its meeting held on 28th May, 2018, has approved the Resolution Plan submitted by UltraTech Cement Limited(“Company”) and has today issued a letter of intent (“LoI”) to the Company for acquisition of BCL.

BCL has capacity of 6.25 MTPA in the state of Rajasthan comprising an integrated cement unit with capacity of 4.85 MTPA and a split grinding unit with capacity of 1.4 MTPA. In addition, subsidiaries of BCL operate 2 MTPA grinding unit in UAE, 3 MTPA clinker unit and 0.5 MTPA grinding unit in China.

The acquisition provides the Company access to large reserves of high quality limestone. The acquisition increases the Company’s presence in the highly competitive and fast growing Northern and Western markets in the country. The Company is confident of turning around the operations of BCL which will benefit all the stakeholders of BCL and result in synergies from optimisation of costs and improved realizations. The Company will be able to infuse the required financial stability and resources to enable BCL’s plants in Rajasthan to compete effectively.

The anticipated synergies due to economies of scale, optimization of costs, wider distribution network and expansion potential will enhance competitiveness and create value for shareholders while also
reducing cost components in relation to distribution, transportation and logistics.

As the Company has already received the CCI approval, the resolution plan is now subject to the approval by NCLT.

Vaish Associates Advocates and Trilegal acted as the legal advisors. PricewaterhouseCoopers acted as the financial diligence advisors.

Upon consummation of this transaction, the Company’s cement capacity (including its overseas operations) will stand augmented to 116.15 MTPAincluding the recently announced acquisition of cement units of Century Textiles & Industries Limited

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