UltraTech Cement To Acquire 31.6% Stake in RAK Cement

This move comes after UltraTech's earlier plan to invest $10.1 million in RAK Cement

UltraTech Cement, a leading cement manufacturer, has announced its intention to acquire 31.6% of RAK Cement Co from White Cement and Construction Materials PSC (RAKWCT), based in the United Arab Emirates. The acquisition will be made through Ultratech’s wholly-owned subsidiary, Ultratech Cement Middle East Investments Limited, headquartered in the UAE. The shares of the company were trading at 1.06% higher, priced at ₹10,333 on the NSE at 9:55 am.

The offer period for the acquisition will start from May 28 and remain open till June 24. The move comes after Ultratech earlier unveiled plans to invest $10.10 million (about ₹839.52 crore) to acquire a 29.39% stake in RAK Cement Company.

Ultratech Cement aims to grow RAK Cement’s business locally and internationally by leveraging its extensive expertise in white cement manufacturing. By adding RAK Cement to its portfolio, Ultratech plans to expand its footprint in the white cement market and strengthen its global presence.

Listed on the Abu Dhabi Stock Exchange and incorporated in September 1980, RAK Cement has demonstrated strong financial performance. For 2023, the company achieved a growth of ₹576.30 crore, representing a growth of over 7% from ₹537.40 crore in the previous year and ₹482.50 crore in 2021.

Currently, UltraTech has a consolidated capacity of manufacturing 138.39 million tonnes per annum (MTPA) of grey cement. The company operates 23 integrated manufacturing units, 29 grinding units, 1 clinkerisation unit, and 8 bulk packaging terminals.

In the March quarter of FY25, UltraTech Cement’s net profit increased by 35% year-on-year (YoY) to ₹2,258.58 crore. On the other hand, revenue also surges by 9.4% YoY to ₹20,418.94 crore.

On May 28, UltraTech Cement’s shares were trading at 1.06% higher, priced at ₹10,333 on the NSE at 9:55 am.