Irish buildings materials giant today said it has completed the first phase of its investment in a privately-owned cement company in India.
Details of the investment in My Home Industries Limited (MHIL), which is based in Hyderabad, were first announced on March 20th this year. CRH is to pay €290 million for a 50 per cent stake and to date CRH has acquired a 45 per cent shareholding.
This is CRH's first move into the Indian cement market.
The second phase of the transaction for the remaining 5 per cent shareholding is expected to be completed in the next three months, the company said this morning in a statement.
MHIL has three cement production units and is building a separate grinding plant on the coast of Andhra Pradesh.
The completion of this plant will see MHIL's annual cement production rise by 1 million tonnes to 4.2 million.
Analysts estimate that emerging markets contribute roughly 15 per cent to group profits at CRH. The Dublin-based group had sales of €21 billion last year and profits before tax of €2 billion.
At 10.20am, shares in CRH were down 0.29 per cent at €24.08.
