UltraTech Cement outlines Century 'Scheme of Arrangement'

UltraTech Cement's Board of Directors has declared the Scheme of Arrangement between Century Textiles and Industries Ltd (Century), the company and their respective shareholders and creditors (the Scheme) to be effective from 1 October 2019.

For the scheme, the company will issue one equity share of face value INR10 (US$0.14) each for every eight equity shares of face value INR10/each held by the shareholders of Century, as on the record date to be decided by Century.

This acquisition further strengthens UltraTech Cement's leadership position in the central, east and south India markets. UltraTech now becomes the only company outside of China to have a capacity of more than 100Mta in a country and is ranked the third-largest cement company in the world, excluding China.

India's cement industry has achieved a growth of 10 per cent in the last two financial years, backed by government's investment in infrastructure and low-cost housing schemes. The industry has seen a slowdown in the first half of this year. The company is confident that the commitment of the government to fast-track India's growth and its recent actions, including a thrust in infrastructure spending, will lead to revival of the demand in the cement industry.