Heidelberg Cement India has received an approval for sale of its cement grinding facility located at Raigad in state of Maharashtra, to JSW Group, as a going concern on slump sale basis. The board of directors at its meeting held on May 21, 2013 has approved for the same.
The company had been exploring possible ways of improving margins of this grinding unit including the possibility to scale up operations but the same was not feasible due to infrastructural bottlenecks. The company has therefore decided to divest its interest in the unit. The parties are currently negotiating and finalizing the terms of the Business Transfer Agreement. The transaction will be finalized only after obtaining all relevant approvals including that of shareholders.
Heidelberg Cement India is one of the leading producers of building materials worldwide. The company manufactures portland slag cement and portland pozzolana cement. The company has manufacturing facilities located at Ammasandra (Karnataka), Damoh (MP) and Jhansi (UP) and has total production capacity of 5.9 million tonnes per annum.