Construction Industry News
Sagar Cements will file a resolution plan for the Andhra Cements acquisition by August 18 and expects to get the necessary approval for the deal by October.
The directors of Hyderabad-based Sagar Cements had approved a proposal on July 20 to file a resolution plan related to the corporate bankruptcy settlement process initiated by the Hyderabad Bench of National Company Law Tribunal (NCLB) on an application filed with relating to Andhra Cements Ltd, a 'corporate debtor'.
“We are submitting the resolution plan and cannot reveal much for now,” said Sreekanth Reddy. Joint director, Sagar Cements, told a newspaper. According to industry sources, the deal could be worth around Rs 14 billion.
On the timeline, Reddy said: "The resolution plan must be submitted by August 18, we should get all the approvals sometime around late September to early October. So regardless of the little zeal we've put in, it looks like it will take about three months has for maintenance before we can start.”
Andhra Cement has a capacity of 1.65 million tons for clinker and 1.8 million tons for milling at the integrated plant at Dachepalle in Guntur, and 0.8 million tons milling capacity at Visakhapatnam.
Sagar Cements had a production capacity of 8.25 million tons at the end of March 2022. The goal is to reach a capacity of 10 million tons by FY25.
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