Mumbai: Gujarat Ambuja Cements Ltd, India’s fourth-biggest cement maker by capacity, has sold part of its stake in Ambuja Cement India Ltd to Holcim Ltd for Rs527 crore. The company sold a third of its 33% stake in Ambuja Cement India, the holding company through which Holcim and Gujarat Ambuja own a share in ACC Ltd, India’s biggest cement maker, Gujarat Ambuja said in a statement on Tuesday. “We will use the money to fund our cement and power expansion plans,” Gujarat Ambuja managing director Anil Singhvi said.
Gujarat Ambuja, part-owned by Holcim, the world’s second-largest cement producer, had said on 2 February that it planned to spend Rs3,350 crore to expand capacity. Gujarat Ambuja made a profit of Rs241 crore from the sale of the 9.5 million shares to Holcim, according to the statement. Increased spending on roads, dams and bridges in the country is boosting demand for cement, spurring Holcim to invest $2 billion (Rs8,800 crore) in India.