India: Dalmia Group is looking at a merger of its listed cement companies Dalmia Bharat and OCL India, according to industry sources. As part of the restructuring plan, Dalmia Bharat will also merge its unlisted arm, Dalmia Bharat Enterprises, with itself. Global private equity firm KKR owns a 14.5% stake in Dalmia. Bharat Enterprises will eventually own a minority stake in the merged listed entity.
Dalmia Bharat and OCL India have revived plans of the merger after a failed attempt in 2008. Dalmia Bharat owns 48% stake in OCL India and both companies together have a cement capacity of close to 20Mt/yr. The new entity would be the fourth largest cement producer in the Indian cement industry.