Sagar Cement is in talks to buy BMM Cements as it plans to use the proceeds from the sale of its stake in the Vicat Sagar joint venture to fund growth organically and through M&A activity.

BMM Cements operates a 1Mta integrated cement works along with a 25MW captive power plant near the Tadipatri in Anantapur district of Andhra Pradesh.

Sources told the Economic Times of India that a team of Sagar Cements has already inspected BMM’s manufacturing and limestone assets and the legal and the financial and due diligence is currently underway.

In July, Sagar Cements confirmed it would sell its 47 per cent stake in its Vicat Sagar Cement joint venture to French partner Vicat for INR435bn. It will also use the proceeds to purchase capital equipment for its existing works in the state of Telangana.