UltraTech Strengthens Cement Dominance with Rs 8,600 Crore Century Deal

UltraTech Cement Ltd has announced the acquisition of Century Textiles and Industries Ltd’s cement business for Rs 8,600 crore. This deal adds 13.4 million tonnes per annum (mtpa) to UltraTech’s capacity, boosting its domestic production from 92.6 mtpa to 106 mtpa—a 15% increase. Its market share in India will rise to 23%, consolidating its presence in central, eastern, and western regions, with market share gains of 6-8% in these zones.

Including overseas operations, UltraTech’s capacity will touch 109.9 mtpa, positioning it as the third-largest cement producer globally, outside China. Analysts note this acquisition strengthens UltraTech’s regional dominance but doesn’t expand its footprint into new markets. Competitors may feel the heat as UltraTech could focus on volume growth, potentially affecting cement prices during a period of weak demand growth.

The acquisition follows UltraTech’s 2017 purchase of Jaiprakash Associates Ltd’s 21 mtpa capacity, which had already pressured prices in northern markets. While May saw a slight price increase nationwide, prices in the north lagged, and central region prices dropped Rs 5 per bag. The western market saw the highest rise, with prices up Rs 14 per bag, while eastern prices remained flat.

This transaction awaits approval from the Competition Commission of India and is expected to close in six to nine months. Input cost pressures and fierce competition may challenge smaller players, as larger firms like UltraTech drive market consolidation.