UltraTech Cement Ltd. : shareholders' dilemma about inorganic growth /

The case discusses the dilemma faced by long-term equity investors regarding the business prospects of UltraTech Cement Limited, the largest cement producing company in India, in the aftermath of the acquisition of a financially stressed cement producer operating at lower production capacity. UltraT...

Full description

Bibliographic Details
Main Author: Rajhans, Rajni Kant (Author)
Format: eBook
Language:English
Published: London : SAGE Publications: SAGE Business Cases Originals, 2022.
Series:SAGE Business cases.
Subjects:
Online Access:Connect to the full text of this electronic book
Description
Summary:The case discusses the dilemma faced by long-term equity investors regarding the business prospects of UltraTech Cement Limited, the largest cement producing company in India, in the aftermath of the acquisition of a financially stressed cement producer operating at lower production capacity. UltraTech management believed that the acquisition would achieve economies of scale and lower lead time to markets. Equity investors, on the one hand, were happy that the new, expanded UltraTech became the fourth largest cement producer globally (excluding Chinese cement producers). But on the other hand, the investors were worried about the likelihood of success of UltraTech in the wake of the acquisition. Students will be asked to evaluate the decision of the management to acquire financially troubled and operationally inefficient plants in an effort to achieve faster growth for UltraTech.
Physical Description:1 online resource : illustrations.
Bibliography:Includes bibliographical references and index.
ISBN:9781529796728
1529796725