Investments focus on key India-centric themes
India Resurgence Fund (IndiaRF), a leading investment platform promoted by Piramal Group & Bain Capital joint venture, has completed the acquisition of a 45.01% equity stake in Mumbai-listed Shree Digvijay Cement Company Limited (SDCCL) for a consideration of up to Rs.579 crores.
The acquisition was from True North Fund VI LLP.
IndiaRF has also announced an open offer for up to 26% equity stake, which is currently awaiting approval from the Securities and Exchange Board of India (SEBI). Post completion of transaction and the open offer, IndiaRF intends to own a controlling stake in Shree Digvijay Cement.
IndiaRF currently manages assets and commitments of approximately US$1.5 billion across diverse sectors. These investments focus on key India-centric themes such as domestic consumption, export-driven strategies, and core infrastructure and manufacturing. The investment in SDCCL is IndiaRF’s second investment from its second fund, which is presently under fund-raising.
SDCCL operates a 3.0 million tonnes per annum (MTPA) cement capacity in Sikka, Gujarat. To strengthen its market presence, SDCCL has entered into a strategic alliance with Rajkot-based Hi-Bond Cement (India) Private Limited which has a cement capacity of 2.2 MTPA.
Under the alliance, SDCCL has signed a 10-year exclusive brand usage, supply & distribution agreement with HIBOND. Further, SDCCL and the promoters of HIBOND have also entered into an agreement which provides the parties with an option wherein SDCCL can acquire 100% ownership of HIBOND in the future. Access to a combined 5.2 MTPA cement capacity in Gujarat positions SDCCL among the leading cement players in the state.
The acquisition, following approval from the Competition Commission of India for the SDCCL–Hi-Bond transaction, marks IndiaRF’s entry into the growing sector and represents the first cement platform investment by an alternate asset manager in India.
Commenting on the transaction, Shantanu Nalavadi, Managing Director of IndiaRF, said on 20 Dec, “The Indian cement sector is poised for significant growth, backed by sustained government-led infrastructure spending and strong housing demand. Given cement’s strong regional dynamics, this deal firmly positions us in Gujarat, enabling us to market and sell 5.2 MTPA through SDCCL and Hi-Bond. We aim to scale this presence through more capacity upgrades, operational improvements, and dealer network expansion to enhance utilization and competitiveness.”
Anil Singhvi, Executive Chairman, Shree Digvijay Cement Company Limited, added, “With multiple brands, a 5.2 MTPA footprint, and a legacy dating back to 1944, the business is well positioned to scale and expand its presence in Gujarat. Building on the foundation laid by True North and leveraging IndiaRF’s financial and operational expertise, we are poised to grow SDCCL into a major regional cement player”
Srikrishna Dwaram, Partner, True North said, “Our six-year partnership with Shree Digvijay Cement has been marked by consistent operational excellence and disciplined growth. The Indian cement industry is currently experiencing robust growth; driven by significant infrastructure projects and rising housing demand. We believe IndiaRF brings the right resources to guide the company through its next growth phase. We wish the team all the best as they continue to build on this foundation.”
With cement demand at approximately 450 MTPA and projected 7–8% CAGR growth, the industry is undergoing significant consolidation. M&A has long been a defining feature of the sector, as leading players pursue greater scale and competitive advantage.
India Resurgence Fund is a 50:50 joint venture between Piramal Group and Bain Capital.
IndiaRF provides attractive, long-term, risk-adjusted returns to investors primarily by making control investments in mid-market companies across diverse sectors. fiinews.com
