Company concludes Sohar Cement acquisition for $60 mn
MUSCAT: Raysut Cement Company, which has recently concluded the acquisition of another Omani cement company, Sohar Cement, has set its eyes on Indian cement market for possible acquisitions.
The acquisition of Sohar Cement at $60 million has helped the company increase its production capacity to 6.4 million tonnes per annum.
In a statement officially released by the company last week, the chief executive of Raysut Cement, the largest in Oman, Joey Ghose said, “We are looking at an aggressive expansion strategy from 2019 with a view to eventually expanding our production to 20 million tonnes per annum.”
India, with a capacity of around 550 million tonnes, is the second largest cement producer after China. With over 500 factories – large medium and small, more than 95 per cent of the capacity is served by just more than 150 cement producers.
Raysut Cement Company on May 19 completed the acquisition of Sohar Cement Factory the process for which had started early this year with a letter of intent jointly signed by both cement companies.
In a statement to Muscat Securities Market (MSM) where its share are listed, Raysut Cement, one of the largest cement companies in the Gulf region, said that it had purchased all of Sohar Cement’s shares effective May 19, 2019 and would immediately begin integration of the company located at the Sohar Industrial Estate in Oman.
“The acquisition of Sohar Cement forms part of Raysut’s ambitious plan to expand its capacity in 2019 to not only supply to its domestic higher demand Northern markets but also to service the rapidly growing neighbouring markets, particularly in Africa and to focus on diversification and grow outside the Gulf region,” said Ghose.
He said the Sohar acquisition also includes taking over the 20 per cent stake held by Fujairah Cement in the company. Raysut had earlier outlined its plans to expand its reach through acquisitions in Africa.
The company had posted a growth of 26.6 per cent in revenues last year with turnover recorded at OMR 91 million ($236.5) , a significant growth from OMR 71.8 million in 2017.