Chettinad Cement, the Chennai-based cement major, will soon acquire Anjani Portland, the Andhra Pradesh-based cement company.

Chettinad Cement will acquire the cement company at a cost between Rs 360 crore to Rs 380 crore.

After divestment of the stake, the promoters of Anjani Portland Cements are expected to exit the cement business, while Chettinad Cements, having a strong presence in Tamil Nadu and Karnataka, will expand its base in Andhra Pradesh.

With this acquisition, Chettinad Cement will also get access to the nearby Orissa market.

Chettinad Cement has three integrated plants in Tamil Nadu at Puliyur, Karikkali and Ariyalur and is looking forward to setting up one more cement plant at Kallur, in Karnataka. The facility has an annual capacity of over 11.5 million tonne in Tamil Nadu alone and plans to add about 15 million tonne by 2015.

Currently, Anjani Portland Cements has a total debt of Rs 222 crore.  The company has an integrated cement plant at Nalgonda, Andhra Pradesh, with a capacity of 1.2 million tpa.

On 7 March 2014, the board of Anjani Portland Cements, approved the disinvestment of its investments in Vennar Ceramics (in which it has 49 per cent holding) and in Hitech Print Systems having 100 per cent stake holding.