Murli Industries Looking For Buyers

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NAGPUR, INDIA (GaeaTimes.com)- Four global cement giants Intalicementi, CRH, Lafarge and Heidelberg Cement are in a race to acquire a little known India based Cement Company named Murli Industries. Earlier the company was also approached by Holcim, the Swiss cement giant. The finals are not known but it is expected that the winning bid will hover around $540-550 million mark. The company is getting the priority owing to the shortage of cement production which lags behind the demand in Maharashtra. After the buyout is complete the cement production unit of Murli industries will be sold or demerged.

In the current financial year Murli Industries has reported a net profit of INR 40 crore. The advisors to the deal are Macquarie and Motilal Oswal. Anand Chandak, the CFO of the company has not commented on the issue so far. The cement giants that are in the race to buy the company have not shed much light on the issue. Nagpur based Murli Industries is involved in other businesses such as edible oils, soya, paper etc. Actually it made foray into cement production much later. Its cement production capacity is pegged at 2.1 tonnes per annum. However, the cement plant is slowly ramping up production to its full capacity and will take some more time to reach that.

After starting cement Production in Nagpur, Murli Industries planned to build similar units in places like Rajasthan and Karnataka. Of late several Cement giants are showing interest in acquiring India based small time cement companies. Vicat SA, a French cement maker bought 51 percent stake in Bharathi Cement of Hyderabad recently.