Reliance Infra concludes sale of cement subsidiary

Mumbai, Aug 22 (IANS) Reliance Infrastructure, a part of the Anil Ambani-led group, on Monday said it has concluded a 100-per cent sale of its cement company to Birla Corp. The deal values the company's cement business at 4,800 crore, or Rs 140 per tonne, the company said.

"Reliance Cement Company has an integrated capacity of 5.08 million tonnes per annum at Maihar in Madhya Pradesh and Kundanganj in Uttar Pradesh and a grinding unit of 0.5 Mtpa at Butibori in Maharashtra. The entire proceeds shall be utilised for debt reduction," the company said.

Reliance Infra had announced its plan to monetise its cement, roads and Mumbai power businesses to reduce the overall debt. State Bank of India Capital Markets acted as the financial advisors to for the sale transaction, the company said.

Birla Corp, established in 1919, is part of the MP Birla Group with presence in cement and jute.

Cement constitutes over 90 per cent of the company's revenues, with a total operational cement capacity of over 10 million tonnes per annum with units in Rajasthan, Madhya Pradesh, Uttar Pradesh and West Bengal.