The Board of Directors of the Company at its meeting held today, has declared the Scheme of Arrangement between Century Textiles and Industries Limited (“Century”), the Company and their respective shareholders and creditors (“the Scheme”) to be effective from 1st October, 2019.
In terms of the Scheme, the Company will issue 1 (one) equity share of face value Rs 10/- each for every 8 (eight) equity shares of face value Rs 10/-each held by the shareholders of Century, as on the Record Date to be decided by Century.
UltraTech is the market leader in the cement industry in the country with leadership across the country, be it North, East, West, Central or South India. This acquisition further strengthens the Company’s leadership position in the Central, East and South India markets.
UltraTech now becomes the only company outside of China to have a capacity of more than 100 million tons in a country.
It is now the third largest cement company in the world, excluding China.
Cement industry has achieved a growth of 10% in the last 2 financial years backed by Government’s investment in the Infrastructure segment and low cost housing scheme. The industry has seen a slowdown in the first half of this year. The Company is confident that the commitment of the Government to fast track India’s growth and its recent actions including a thrust in infrastructure spending, will lead to revival of the demand in the cement industry. UltraTech with its leadership position and a strong presence across the country, is very well placed to benefit from this strong growth.