Ambuja Cements buys controlling stake in Nepal’s Dang Cement
07 Jun 2011
Ambuja Cements Ltd, India's third-largest cement maker, has acquired an 85-per cent stake in Nepal's Dang Cement Industries for Rs19.13 crore, it said on Monday.
Founded in 2003, Dang Cement holds limestone mining lease for cement grade limestone deposit located in the hill ranges of Mahabharat in the adjoining area of the Purandhara Village Development Committee (VDC) of Dang district and the Kavra and Laxmipur VDCs of Sallyan district in the Mid - western development region of Nepal.
At present, the Nepalese company is not carrying out any business, though it plans to install and operate a 1. 2-million tonne per annum capacity cement plant in two phases near the foothill of the deposit at Purandhara in Dang valley.
In a stock exchange filing, the domestic cement maker said it was also in the process of acquiring an additional 5-per cent stake in the Nepalese firm for Rs1.13 crore.
Dang Cement Industries holds a limestone mining lease in Nepal. Limestone is a key raw material for manufacturing of cement.
"At present, the company (Dang) is not carrying out any business activity," the Ambuja statement said.
With the acquisition, Dang Cement Industries has become an Ambuja subsidiary.