Century Textiles, owned by Birla patriarch Basant Kumar Birla, will spin off its cement business and merge it in an all-share deal with UltraTech Cement, owned by grandson Kumar Mangalam Birla, two people with direct knowledge of the plan have told the Economic Times of India.

"Both companies are in the final stages of a plan to merge the cement businesses," one of the two persons said. "The enterprise value of Century's cement business has been put at INR10,500 crore, and an announcement could be made in a few weeks."

Post merger, UltraTech will gain access to the eastern market while strengthening its presence in Maharashtra, Chhattisgarh and Madhya Pradesh, the report states.