Key Takeaways from the Order Win

• Shakti Pumps (India) Limited has received a significant work order from the Haryana Renewable Energy Department (HAREDA) to supply, install, and commission 3,174 solar water pumping systems under Component B of the PM-KUSUM scheme. 
• This domestic order does not involve any related party transactions, and there is no promoter interest in HAREDA. 
• The project aligns with Shakti Pumps’ mission to support sustainable energy initiatives within India’s agricultural sector.

This order is for the supply, installation, and commissioning of 3,174 solar water pumping systems. The contract's total value is Rs. 102.25 crore, exclusive of GST, and inclusive of GST, it totals Rs. 116.36 crore. Shakti Pumps is expected to fulfil this work order within 120 days from the issuance date.

The contract offered by HAREDA, an Indian entity, is a related party transaction, and neither the promoter group nor group companies have a vested interest in HAREDA. Again, massive order gives emphasis to the commitment of Shakti Pumps towards the expansion of renewable energy solutions in India, especially the ones in the agricultural sector under the scheme initiated by the government, PM-KUSUM to promote sustainable energy usage.

About Shakti Pumps (India) Limited

Shakti Pumps (India) Ltd. manufactures pumps and motors and specialises in sophisticated pumps for the requirement of pumping water for a variety of purposes that include irrigation, horticulture, and potable water supply, as well as for commercial and industrial applications.

Key Takeaways from the Announcement

• UltraTech Cement’s UAE subsidiary, UCMEIL, has increased its shareholding in Ras Al Khaimah Co. for White Cement and Construction Materials PSC (RAKWCT) from 54.39% to 65.94% with the acquisition of an additional 11.55% stake.
• This strategic acquisition aligns with UltraTech’s goal to leverage its expertise in white cement manufacturing and expand RAKWCT’s market reach both locally and internationally, particularly by introducing products like wall care putty and other innovative building materials.
• Established in 1980 and listed on the Abu Dhabi Stock Exchange, RAKWCT has reported steady revenue growth, with a turnover of INR 576.3 crore in 2023, demonstrating consistent market performance in the UAE’s building materials sector.

With this latest acquisition of 5,77,74,407 shares, representing 11.55% of RAKWCT’s share capital, UCMEIL's shareholding in the company has now increased to 65.94%, strengthening its control and influence over RAKWCT.

RAKWCT specialises in white cement clinker, white cement, and various construction materials. UltraTech’s objective with this acquisition is to capitalise on its extensive expertise in white cement manufacturing and expand RAKWCT’s market reach locally, regionally, and globally. 

This expansion will include introducing advanced products such as wall care putty and other innovative materials to meet growing demand in construction and building projects worldwide.

The acquisition, executed for a cash consideration of approximately USD 22.02 million, is in alignment with UltraTech’s broader strategy to expand its white cement portfolio. This transaction does not qualify as a related party transaction, as none of UltraTech’s promoters or promoter group companies have an existing interest in RAKWCT, which has already been a subsidiary of UCMEIL with a prior 54.39% stake.

RAKWCT, established on September 10, 1980, has shown consistent growth in revenue over the past three years, with reported turnovers of INR 576.3 crore in 2023, INR 537.4 crore in 2022, and INR 482.5 crore in 2021. Headquartered in Ras Al Khaimah, United Arab Emirates, RAKWCT’s increasing operational reach and product range align well with UltraTech’s aim to strengthen its footprint in the white cement market across diverse geographies, leveraging RAKWCT’s established presence and resources. 

This acquisition is expected to enhance UltraTech’s competitive position and contribute to its long-term growth objectives in the building materials industry.

About UltraTech Cement Limited

UltraTech Cement Limited is the main cement company of the Aditya Birla Group, valued at USD 8.4 billion. It is the third largest cement producer in the world, outside of China, with a total grey cement capacity of 156.06 million tonnes per annum (MTPA). UltraTech is a founding member of the Global Cement and Concrete Association (GCCA) and has pledged to the GCCA's Climate Ambition 2050, committing to the Net Zero Concrete Roadmap announced by the association.

Key Takeaways from the Announcement

• Gravita India Ltd. has increased its effective ownership in Navam Lanka Limited (NLL), a Sri Lankan step-down subsidiary, from 52% to 69.85% following a share buyback.
• The share buyback was funded from NLL’s reserves and surplus, with Gravita Netherlands B.V., Gravita India’s holding entity for NLL shares, opting not to participate in the repurchase.
• The buyback resulted in increased strategic control for Gravita India in NLL, bolstering the company’s influence over its international operations in Sri Lanka.

Share buyback was done at LKR 3,530 per share and about INR 23 crore amounting to it, financed through the reserves and surplus of NLL.

Gravita Netherlands B.V., a subsidiary wholly owned by Gravita India and holding shares in Navam Lanka Limited, refused to offer their shares in the buyback of shares, and therefore, 229,087 shares were offered by other shareholders of NLL. Consequently, as a result, Now, Gravita Netherlands B.V.'s shareholding in Navam Lanka Limited has increased from 52% to 69.85%.

This increased ownership strengthens Gravita India's grip on Navam Lanka Limited, further improving the company's leadership stake in its overseas operations.

About Gravita India Limited

Founded in 1992, Gravita India Ltd. is one of India’s largest lead producers, with operations across four specialised verticals: Lead Recycling (its flagship business), Aluminum Recycling, Plastic Recycling, and Turnkey Projects. The company’s diverse product range spans Pure Lead, Lead Alloys, Lead Sheets, Lead Powder, and PET Flakes, organised under five key areas: Lead Recycling, Aluminum Recycling, Plastic Recycling, Rubber Recycling, and Turnkey Solutions.

Key Takeaways from the Order Win

• Shakti Pumps (India) Limited has received a significant work order from the Haryana Renewable Energy Department (HAREDA) to supply, install, and commission 3,174 solar water pumping systems under Component B of the PM-KUSUM scheme. 
• This domestic order does not involve any related party transactions, and there is no promoter interest in HAREDA. 
• The project aligns with Shakti Pumps’ mission to support sustainable energy initiatives within India’s agricultural sector.

This order is for the supply, installation, and commissioning of 3,174 solar water pumping systems. The contract's total value is Rs. 102.25 crore, exclusive of GST, and inclusive of GST, it totals Rs. 116.36 crore. Shakti Pumps is expected to fulfil this work order within 120 days from the issuance date.

The contract offered by HAREDA, an Indian entity, is a related party transaction, and neither the promoter group nor group companies have a vested interest in HAREDA. Again, massive order gives emphasis to the commitment of Shakti Pumps towards the expansion of renewable energy solutions in India, especially the ones in the agricultural sector under the scheme initiated by the government, PM-KUSUM to promote sustainable energy usage.

About Shakti Pumps (India) Limited

Shakti Pumps (India) Ltd. manufactures pumps and motors and specialises in sophisticated pumps for the requirement of pumping water for a variety of purposes that include irrigation, horticulture, and potable water supply, as well as for commercial and industrial applications.