UltraTech Cement Bolsters Putty Portfolio with Wonder WallCare Acquisition

UltraTech Cement, an Aditya Birla Group entity, has received board approval for the acquisition of 100 per cent stake in Wonder WallCare Private Ltd for an enterprise value of ₹235 crore. The transaction, formalised through a share purchase agreement with Wonder Cement Ltd and a 25 per cent stakeholder, is anticipated to conclude within the next 90 days, contingent upon customary regulatory clearances and compliance.

This strategic move allows UltraTech to access a state-of-the-art manufacturing facility in Rajsamand, Nathdwara, Rajasthan, boasting a capacity of 6 lakh tonnes per annum for wall putty and allied products. The newly constructed plant, completed in 2022-23, is described as one of India's largest single-location putty production sites and holds the potential for future capacity augmentation. Its advantageous location, situated at the pithead of substantial high-quality raw material reserves and in close proximity to UltraTech’s existing putty manufacturing operations within Rajasthan, is expected to yield operational efficiencies.

According to the company, this acquisition aligns with UltraTech’s broader strategy to expand its presence in the white cement and wall putty sectors. It will significantly enhance UltraTech's production capabilities in the competitive and fragmented Indian wall putty market, allowing the cement major to further penetrate the value-added products segment. The addition of Wonder WallCare’s infrastructure is poised to strengthen UltraTech’s market position in this domain.

The regulatory filing by UltraTech Cement on Thursday, April 3, 2025, detailed that the acquisition encompasses 6.42 crore equity shares of Wonder WallCare, each with a face value of ₹10. Upon the transaction's completion, Wonder WallCare Private Ltd will become a wholly-owned subsidiary of UltraTech Cement. The consideration for the acquisition will be discharged in cash.

Investor sentiment appeared positive following the announcement, with shares of UltraTech Cement closing in the green on the National Stock Exchange (NSE) at ₹11,606.60 apiece, marking a gain of 3.16 per cent on April 3, 2025. As of the same date, UltraTech Cement held a total market capitalisation of ₹3.42 lakh crore on the NSE. This acquisition underscores UltraTech’s commitment to growth through strategic investments and market expansion in the building materials sector.

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