Sagar Cements is reportedly set to acquire cement business of Bangalore-based BMM Ispat Group. The deal, with an enterprise value of about Rs 500 crore, is likely to be sealed in a couple of weeks.
Once the deal is closed, Sagar’s capacity would go up from 2.75 million tonnes to 3.75 million tonnes as BMM has a one-million-tonne cement manufacturing unit at Tadipatri in Anantapur district of Andhra Pradesh.
The acquisition would benefit Sagar as it would provide easy access to southern markets and significantly reduce freight charges by over 40 per cent. Further, it also has a captive power plant of 25 MW.
