9SEPTEMBER 2025BIRLA CORP TO CONSOLIDATE CEMENT BUSINESS OPERATIONSIn a significant development from Kolkata, Tega Industries has gained national prominence with the announcement of the $1.48 billion acquisition of Molycop, one of the largest grinding-media multinationals globally.The deal, finalized with Wall Street's Apollo Global Management, is the most significant acquisition by an Indian company in three years, displaying a significant Birla Corporation Limited the flagship company of the M.P. Birla Group, has announced its intention to first consolidate its work in the cement sector and then delve into diversification with meaningful changes in the sector.During the company's Annual General Meeting, Chairman Harsh V. Lodha pointed out that Birla Corporation is a top company in the central India market and is currently running with a cement production capacity of 20 million tonnes. The plan is to escalate this capacity to 27.6 global aspiration from the City of Joy, which is more commonly associated with culture than with commerce.Under the agreed terms, Tega will hold almost 77% of the special purpose vehicle executing the acquisition, with Apollo funds representing around 23% of ownership. The acquisition is also at an attractive valuation level marked at ~ 8.6x FY25 EBITDA of $172 million, which is an attractive valuation level well below Tega's own trading multiple of 25x EBITDA (TTM) and significantly lower than comparable companies, such as Weir, Metso, Orica and FLSmidth.Mehul Mohanka, the Managing Director & Group CEO and the second-generation leader of Tega Industries, is taking a bold move into the global mining consumables arena. Tega's acquisition of 100-year-old Molycop, a prior American Industrial Partners company, will propel Tega as a keystone mining consumables provider for miners and mills around the world.This noteworthy transaction illustrates more than economic ambition; India is solidifying its market position in the industrial spine of electrification and the green economy, where reliable, mine inspection, and consumables market solutions will play an important factor in the future. million tonnes by the year 2028­29 via the commissioning of new grinding units and the setting up of clinkerisation facilities. It is estimated that the proposed expenditure for this project is Rs. 4,335 crore.Lodha also indicated that the process of allotment of coal blocks to the company is moving from one approval stage to another. He stated that the company is also deeply involved in the jute business and has started activities for revenue growth in Birla Jute Mill, the first jute mill set up by an Indian family in the country.In addition to cement and jute, the company has progressively been concentrating on renewable energy, and the consumption has been growing steadily throughout operations.Managing Director and CEO Sandip Ghose mentioned that Birla Corporation has set its mind on retaining its market share both in volume and value terms. He further added that endorsing the core strengths of cement will be the tool for the better price realization. In the meanwhile, getting diversified into value-added businesses is his main concern to secure long-term growth. TEGA INDUSTRIES EXPANDS GLOBAL REACH WITH $1.48 BN MOLYCOP DEAL
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