*UltraTech Cement's Turnaround Plan for India Cements* *By The Valuation School* *Acquisition Overview* UltraTech Cement became the majority stakeholder in India Cements Ltd (ICL) on December 24, 2024, by acquiring an 81.49% stake through an open offer priced at ₹390 per share. To comply with regulatory norms, UltraTech will reduce its stake to 75%. The acquisition cost was below $100 per tonne of production capacity, making it a cost-efficient deal. *What challenges is India Cements facing?* India Cements has been struggling financially, reporting a ₹429 crore loss in the December 2024 quarter compared to ₹17 crore in the same period the previous year. Net sales declined from ₹1,082 crore to ₹903 crore, and capacity utilisation stood at 57% across its total production capacity of 14.45 million tonnes, with most plants located in South India. Its net debt stands at ₹877 crore. *What is UltraTech's Turnaround Strategy?* UltraTech plans to address these challenges through targeted measures: 1. *Operational Improvements*: Debottlenecking key plants to improve efficiency and increase output. 2. *Expansion*: Exploring opportunities at two to three additional locations to enhance operations. 3. *Cost Efficiency*: Implementing waste heat recovery systems to lower operational costs. These measures are expected to show some results by the end of FY25, with more significant benefits by late 2026. *Debt Reduction Plans* To address India Cements’ debt burden, UltraTech plans to monetise non-core assets and use the cash generated to improve the company’s financial health. UltraTech aims to finalise a detailed revival strategy for India Cements within the next quarter. The objective is to restore profitability within 12 months and strengthen its position in the South Indian market. *Acha laga, react & share karo & follow our social media for more updates & financial content:* ✅ WhatsApp Channel: https://t.ly/BJTRY ✅ Youtube: https://t.ly/lJqST ✅ Newsletter: https://t.ly/L2vK2 ✅ Instagram: https://t.ly/SLIX4 ✅ LinkedIn (Parth Sir): https://t.ly/mN4yj ✅ LinkedIn (The Valuation School): https://t.ly/Hbeh0 *Note:* This post is just for educational purposes and not a buy/sell recommendation.