Cement maker Dalmia Bharat Ltd said on Tuesday it is consolidating its east India operations to simplify its corporate structure.
The company said in a statement its board has approved the merger of OCL India Ltd and Dalmia Cement East Ltd with Odisha Cement Ltd, which will be renamed as OCL India Ltd.
It has also approved the merger of Adhunik Cement with Dalmia Cement (Bharat) Ltd, or DCBL, and transfer of the power assets of Dalmia Cement Bharat Power Ventures Ltd to DCBL.
After consolidation, OCL will emerge as one of the largest producers of portland slag cement in India.
Dalmia Bharat is the holding firm of both cement and power businesses. The company makes all kinds of cement including super-specialty cement used for oil wells, railway sleepers and air strips. The group has a presence in southern and eastern India, including the northeast.
The group has a cement capacity of 25 million tonnes. The market is dominated by UltraTech Cement Ltd and LafargeHolcim, which operates Ambuja Cement Ltd, ACC Ltd and Lafarge India.
Earlier this year, private equity giant KKR decided to swap its stake in Dalmia Cement for a piece of its public listed parent in a virtual cashless deal.
The twin transactions saw Dalmia Bharat buying out KKR's 15 per cent stake in Dalmia Cement for Rs 600 crore ($89 million) and issue shares worth Rs 619 crore ($91.3 million). It will give KKR an 8.5 per cent stake in Dalmia Bharat, making it the single-largest institutional shareholder of the firm.
KKR had invested Rs 750 crore in an unlisted arm of Dalmia Cement (Bharat) called Avnija Properties in 2010.
