Industrial giant Nirma, headquartered in Gujarat, is all set to buy 11 million tone cement assets of Lafarge located in eastern India at a cost of Rs 9,300 crore.
Sources say that the deal has been clinched by Hiren Patel, MD of Nirma Group.
The deal is a shot in the arm for the company whose proposed cement plant in Mahuva, Saurashtra region of Gujarat has gone into litigation some time back following protests by villagers. The villagers had raised environmental concerns because of the proposed plant.
According to sources, Nirma Group surged ahead in the bid. Among the bidders included the Piramal Group and JSW. Companies based in Brazil and China had also took part in the bidding.
With this acquisition, Nirma’s cement capacity would increase five times, sources said.
The deal is subject to approval by the Competition Commission of India.
Nirma Group MD Hiren Patel has been quoted saying that the acquisition was a landmark and transformational step for the Group’s cement business.
Sources said that the company would finance the new deal with a mix of equity and debt.
Hiren, who holds a degree in chemical engineering and MBA in marketing from the USA, is believed to be leading the company from the front.
Associated with the company since late 1990s, he became the MD in 2006.
The Nirma group was founded in the 1960s by his father Karsanbhai who initially sold detergent powder door-to-door. The company grew leaps and bounds and Nirma now is a household name.
The company also has presence in the field of salt, soda ash, cement and caustic soda.