L&T exits Ultratech Cement
By Chris Sleight16 June 2009
Larsen & Toubro (L&T), India's largest construction company, has sold its 11.49% stake in Ultratech Cement for INR 1037 crore (US$ 220 million). The divestment marks L&T's exit from the cement industry, a process it began in 2004 with the sale of a majority stake in the business to Grasim.
Although L&T's stake was sold on the open market, Grasim remains the controlling shareholder in Ultratech. Ultratech claims to be India's biggest cement exporter, with its overseas sales of 2.5 million tonnes of cement accounting for 30% of Indian cement exports. Last year it had sales of INR 5624 crore (US$ 1.2 billion) last year.
Grasim meanwhile is controlled by the Aditya Birla Group, one of India's largest private companies. Although a large diversified industrial group, Grasim is one of India's largest cement producers, with an annual production of some 17 million tonnes of cement and 5.6 m3 of ready-mixed concrete.