CRH signs contract for acquisition of 50% equity stake in My Home Industries Limited, India
20 March 2008
CRH plc, the international building materials group, announces that it has signed an agreement to acquire a 50% shareholding in My Home Industries Limited ("MHIL"), a privately-owned cement company with its head office in Hyderabad, India. CRH's total investment will be €290 million. CRH and the existing owners will jointly manage MHIL and both parties will have equal Board and management representation. The transaction is expected to be completed during the second quarter of 2008.
MHIL's operations consist of three cement production units at Mellacheruvu village in central Andhra Pradesh with a separate grinding plant under construction near Vishakapatnam on the coast of Andhra Pradesh. Current annual cement production capacity is 3.2 million tonnes, which will increase to 4.2 million tonnes on completion of the grinding plant in early 2009. MHIL has strong market positions in central and eastern Andhra Pradesh and completion of the grinding plant will strengthen its position in these markets. Overall MHIL is the number two supplier to the 15 million tonnes Andhra Pradesh market.
Commenting on the development, Liam O'Mahony, CRH Chief Executive, said: "MHIL is one of the most modern cement producers in India with excellent reserves and a strong management team and is a market leader in the dynamic Andhra Pradesh market. As a first investment in India, we are delighted to be associated with such a strong company and look forward to developing the business with our partner as the Indian economy expands."