India Resurgence Fund (IndiaRF), a joint venture between Piramal Group and Bain Capital, has acquired a 45.01% stake in Shree Digvijay Cement Company Limited (SDCCL) for approximately INR 579 crores. The stake was purchased from True North Fund VI LLP, and IndiaRF has also announced an open offer to acquire up to 26% more equity stake, pending approval from the Securities and Exchange Board of India (SEBI). Upon completion of the transaction and open offer, IndiaRF aims to own a controlling stake in SDCCL.
SDCCL operates a 3.0 million tonnes per annum (MTPA) cement capacity in Gujarat and has entered into a strategic alliance with Hi-Bond Cement, which has a 2.2 MTPA capacity. The alliance includes a 10-year exclusive brand usage, supply, and distribution agreement, and SDCCL has the option to acquire 100% ownership of Hi-Bond in the future. This combined 5.2 MTPA cement capacity positions SDCCL as a leading cement player in Gujarat.
The acquisition marks IndiaRF’s entry into the growing cement sector, which is poised for significant growth due to sustained government-led infrastructure spending and strong housing demand. IndiaRF plans to scale its presence in the sector through capacity upgrades, operational improvements, and dealer network expansion.
Shantanu Nalavadi, Managing Director of IndiaRF, commented that the Indian cement sector is poised for significant growth, and this deal positions IndiaRF firmly in Gujarat. Anil Singhvi, Executive Chairman of SDCCL, added that the business is well-positioned to scale and expand its presence in Gujarat, leveraging IndiaRF’s financial and operational expertise.
The cement industry in India is undergoing significant consolidation, with demand projected to grow at a 7-8% CAGR. The acquisition is expected to provide IndiaRF with a strong platform to pursue growth opportunities in the sector. IndiaRF currently manages assets and commitments of approximately US$1.5 billion across diverse sectors, and this investment is its second from its second fund, which is currently under fund-raising.