HeidelbergCement India Ltd inks manufacturing tie-up with HimalayaHeight Cement Pvt Ltd

HeidelbergCement India Limited ('HCIL') ('the Company') has entered into a Manufacturing Tie-up Arrangement with HimalayaHeight Cement Private Limited ('HCPL'). Under the aforesaid arrangement, HCPL will manufacture Portland Pozzolana Cement (PPC) at its Bhabhua Grinding Plant in Bihar and pack the same in bags bearing HCIL's registered trademark 'mycem' in accordance with applicable BIS norms and quality and other specifications provided by HCIL. The cement sales will be handled by marketing team of HCIL.

HCIL proposes to buy PPC from HCPL in terms of the licence granted by the Bureau of Indian Standards ("BIS"). HCPL has accepted the proposal of HCIL and has agreed to sell its products being produced at its Bhabhua Plant. HCIL desires to get the cement packed in the bags as per its requirement with brand name of mycem. Further, the agreement will enable the Company to re-enter into Bihar market.

HCIL has a cement manufacturing capacity of 6.26 million tonnes per annum and HCPL has a cement manufacturing capacity of 0.21 million tonnes per annum.

The above transaction is in the best interest of the Company, as it will enable the Company to further strengthen its product portfolio, increase its market presence, enter into new markets and have a positive impact on its revenue and profitability.

Shares of HeidelbergCement India Limited was last trading in BSE at Rs. 236.85 as compared to the previous close of Rs. 224.90. The total number of shares traded during the day was 162087 in over 4810 trades.

The stock hit an intraday high of Rs. 239.45 and intraday low of 225.60. The net turnover during the day was Rs. 38107001.00.

Source : Equity Bulls

Keywords

HeidelbergCementIndia INE578A01017 ManufacturingTieup HimalayaHeightCement