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UltraTech Cement to Acquire Wonder WallCare for ₹235 Crore

Synopsis:

UltraTech Cement has announced the acquisition of Wonder WallCare Pvt Ltd for ₹235 crore. This strategic move includes a state-of-the-art manufacturing facility in Rajasthan, aiming to strengthen UltraTech's position in the wall care segment and expand its value-added product offerings.


UltraTech Cement, India's leading cement producer, has approved the acquisition of Wonder WallCare Pvt Ltd for an enterprise value of up to ₹235 crore. This acquisition encompasses 6.42 crore equity shares, representing a complete 100% stake in the company. The deal is expected to conclude within 90 days, pending regulatory approvals and compliance.

Also read: HDFC Bank Q4 Update: Deposit Growth Strong, Loan Growth Slows

ULTRATECH CEMENT LIMITED

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11507.05-99.54 (-0.85 %)

Updated - 04 April 2025
11613.50day high
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11470.15day low
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33783
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Key Takeaways:

  • Acquisition Details:

    • Target Company: Wonder WallCare Pvt Ltd

    • Stake Acquired: 100% (6.42 crore equity shares)

    • Enterprise Value: Up to ₹235 crore

    • Expected Closure: Within 90 days, subject to approvals

  • Strategic Benefits:

    • Manufacturing Capacity: Access to a 600,000 tonnes per annum wall putty plant

    • Location Advantage: Facility located in Rajsamand, Rajasthan, near high-quality raw material reserves

    • Product Portfolio Expansion: Strengthening presence in the wall care segment with value-added products

Also read: Zomato to Rebrand as Eternal Ltd on April 9, Symbol Changes to ETERNAL

Strategic Expansion into Wall Care Segment

The acquisition aligns with UltraTech Cement's strategy to diversify and enhance its portfolio of value-added products. Wonder WallCare's manufacturing facility, established in 2022–23, is one of India's largest single-location putty plants. Situated at the pithead of substantial high-quality raw material reserves in Rajsamand, Rajasthan, the plant offers significant expansion potential.

This move is set to bolster UltraTech's capabilities in the competitive and fragmented wall putty market, complementing its existing 'Birla White' brand offerings.

Financial Performance and Market Impact

Wonder WallCare reported a turnover of ₹78.61 crore in FY24, up from ₹20.36 crore in the previous fiscal year, indicating robust growth.

Following the announcement, UltraTech Cement's share price closed at ₹11,606.60 on the National Stock Exchange (NSE), marking a 3.16% increase. The stock has shown a 13.64% rise in March and a 1.58% year-to-date gain, reflecting positive investor sentiment.

Acquisition Overview:

Parameter

Details

Target Company

Wonder WallCare Pvt Ltd

Stake Acquired

100% (6.42 crore equity shares)

Enterprise Value

Up to ₹235 crore

Manufacturing Capacity

600,000 tonnes per annum

Facility Location

Rajsamand, Rajasthan

FY24 Turnover

₹78.61 crore

Expected Deal Closure

Within 90 days, subject to approvals

UltraTech Cement's acquisition of Wonder WallCare is a strategic step towards enhancing its footprint in the wall care segment. By integrating Wonder WallCare's advanced manufacturing capabilities and leveraging its strategic location, UltraTech aims to strengthen its position in the value-added products market, potentially influencing the UltraTech share price positively in the long term.

Also read: Government To Sell 4.83% Stake In Mazagon Dock At 8% Discount

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