UltraTech expands footprint with acquisition of rival

India's largest cement maker, UltraTech Cement is set to purchase the cement business of its compatriot Century Textiles and Industries. The acquisition will boost its production capacity 14% to 100 million tons annually. The purchase will be made through a stock swap scheme under which UltraTech issues to Century Textiles shareholders one new share per eight shares in the latter. India is the world's second-largest cement market after China and is growing. UltraTech chose to buy an existing business, rather than build new plants, to more quickly ramp up its production capacity and solidify its leading position. The cement major aims to complete the acquisition process by February 2019, pending approval by shareholders and regulatory authorities, including the Competition Commission of India.