Sagar Cements in talks to acquire Bangalore-based BMM Ispat unit.

Hyderabad-based Sagar Cements is in talks to buy Bangalore-headquartered BMM Cements as it looks to invest the money it made by cashing out of a joint venture with France's Vicat, two people aware of the plan told ET.

The development will underscore consolidation in the 130-million-tonne South Indian cement market, which accounts for more than a third of India's capacity of 360 MT. The industry, which is operating at half its potential and incurring losses, added nearly 50 per cent of its capacity in the past five years at an average cost of $100 ( Rs. 600 crore) a tonne.

Group, has a one-million-tonne capacity greenfield cement facility, along with a 25 megawatt captive power project near Tadipatri in Anantapur district of Andhra Pradesh. Sagar netted Rs. 435 crore by selling a 47 per cent stake to Vicat earlier this year.


ET