CK Birla Group’s HIL to buy Fast Build Blocks

HIL Ltd, the flagship company of the $2.8 billion CK Birla Group and a major player in the building materials space in India, will acquire the entire business undertaking of Fast Build Blocks Pvt Ltd on slump sale basis, said the company statement.

As per the agreement, HIL will buy the entire manufacturing, distribution and sales network of autoclaved aerated concrete (AAC) blocks and will take over the entire liabilities of the target company.

Singhi Advisors acted as the exclusive buy side advisors for HIL on this acquisition.

AAC blocks is a modern substitute for bricks and globally has a market share of around 40% and 5% share in Indian market, it said.

The listed entity HIL is the world’s largest manufacturer and seller of fibre cement roofing and is a leading provider of comprehensive building solutions. Fast Build is the pioneer in manufacturing AAC blocks and its facilities are strategically located in the Cuttack district of Odisha.

The acquisition will help HIL to profitably ramp up its business and take leadership position in the eastern region where it does not have AAC blocks manufacturing facility, statement added.

"The buyout will further bolster our position in the building solutions industry and help in expanding our client-base," said Dhirup Roy Choudhary, Managing Director and CEO of HIL.