Group’s Indian joint venture to acquire 100% of shares in Sree Jayajothi Cements Ltd
CRH plc’s 50:50 joint venture in India, My Home Industries Ltd (MHIL), has reached an agreement to acquire 100% of the shares of Sree Jayajothi Cements Ltd (SJCL), a 3.2 million tonnes per annum cement company based in South India for an enterprise value of INR14,000 million (€175 million).
The investment will be financed from MHIL’s existing debt capacity and by equity inputs from the joint shareholders (€70 million). CRH’s equity interest will amount to approximately €35 million.
CRH entered the Indian market in 2008 with the acquisition of a 50% stake in MHIL, a cement business located in Andhra Pradesh in South India. MHIL have an annual cement capacity of 4.8 million tonnes per annum from two plants and are the lowest-cost producer and a leading player in their market.
With the addition of SJCL, MHIL will become the market leader in the Andhra Pradesh region and will benefit from complementary market coverage.