IBC ‘Cements’ Its Victory: UltraTech Makes Binani Cement Its Wholly Owned Subsidiary After Board Approval
The board of UltraTech Cement on Tuesday (21 November) approved to make Binani Cement (BCL), its wholly owned subsidiary, as reported by The Hindu. UltraTech, owned by the Aditya Birla Group, is India’s largest cement manufacturing company.
“UltraTech has acquired BCL’s plants totalling 6.25 million tonnes per annum (mtpa) in Rajasthan, inclusive of an integrated cement unit and a split grinding unit at a value of ₹8,024 crore,” noted a statement by the company.
UltraTech had emerged as the highest bidder for the assets of the debt-laden Binani Cement. The latter was admitted into NCLT (National Company Law Tribunal) to undergo resolution as it had become insolvent and was classified as NPA (Non-Performing Assets) by its creditors and PSBs (Public Sector Banks).
UltraTech’s statement added that BCL’s acquisition would enhance its competitiveness and benefit consumers as well as stakeholders. It stated that the company is very well positioned to turnaround BCL’s operations, given its competence and unmatched experience in this sector.
This deal will help the company cross the threshold of 100 million tonne capacity and make it the third largest cement company in the world, barring China.
Insolvency and Bankruptcy Code of India, 2016 (IBC) is NDA government's flagship resolution to aims to provide a comprehensive solution for creditors to recover their dues from wilful default and errant firms.
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