Reliance to sell part of cement division?

Reliance Infrastructure, part of the Anil Ambani-led Reliance Group, may sell half of its cement business to fund the acquisition of Pipavav Defence and Offshore Engineering.

Reliance Cement is in talks with Heidelberg and Italcementi, and has offered a 50 per cent stake in the company, according to a report published yesterday by Business Standard (India). The prospective joint venture partner will also fund the company's cement capacity expansion - estimated to rise from 5Mta to 15Mta by 2018, the article stated. Details of the valuation of the possible deal are unknown.

As an avenue for growth, Reliance Infrastructure has decided to focus on defence, rather than cement.

Reliance Cement has a 5Mta plant in Maihar (Madhya Pradesh). As part of its expansion plan, it is setting up another 5Mta plant in Maharashtra, which is set to become operational by 2017. The company is also planning to expand by a further 5Mta plant by 2018 and is considering whether to undertake the project in the south or north of India.