UltraTech Demerger with Kesoram Industries: Entry into Wires & Cables Business

On Tuesday, February 25, 2025, UltraTech Cement Ltd, the flagship company of the Aditya Birla Group, announced that its board of directors had approved the implementation of a demerger scheme involving Kesoram Industries, effective from March 1, 2025. Under this scheme, UltraTech will issue 1 equity share of ₹10 each for every 52 equity shares of ₹10 each held by Kesoram’s shareholders as of the record date.

Preference Shareholders’ Exchange

As part of the demerger process, Kesoram’s preference shareholders will receive 54,86,608 fully paid-up 7.3% non-convertible redeemable preference (NCRP) shares of ₹100 each. This will be in exchange for the 90,00,000 5% cumulative NCRP shares of ₹100 each currently held by Kesoram’s preference shareholders.

Moreover, 8,64,275 fully paid-up 7.3% NCRP shares of ₹100 each will be issued in exchange for the 19,19,277 optionally convertible redeemable preference shares of ₹100 each held by Kesoram’s preference shareholders. The record date for equity shareholders will be announced by Kesoram Industries.

Expansion into Wires and Cables Segment

In a strategic move, UltraTech Cement has revealed its plans to expand into the wires and cables segment with an investment of approximately ₹1,800 crore over the next two years. This initiative is part of the company’s strategy to diversify and strengthen its presence in the construction value chain.

The board of UltraTech Cement has approved this new venture, which will be executed through its Building Products Division. The goal is to establish UltraTech as a comprehensive Building Solutions provider, leveraging its expertise in manufacturing and customer relationships to offer high-quality wires and cables.

New Manufacturing Facility in Gujarat

UltraTech plans to set up a manufacturing plant for wires and cables near Bharuch, Gujarat, which is expected to be operational by December 2026. This expansion is aimed at enhancing the company’s market share in the growing wires and cables sector.

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