As part of the new expansion strategy, Raysut Cement last week announced the complete acquisition of Sohar Cement Factory LLC at a value of US$60mn.
“We are looking at an aggressive expansion strategy from 2019 with a view to eventually expand our production to 20mn tonnes per annum,” Raysut Cement’s chief executive Joey Ghose said in a press statement.
Raysut Cement had earlier outlined the plans to expand its reach through acquisitions in Africa. As a next expansion phase, Raysut Cement will be looking at India, where it is likely to enter through acquisitions, according to the statement.
The acquisition of Sohar Cement brings up Raysut Cement’s production capacity to 6.4mn tonnes per annum. The company will immediately begin integration of Sohar Cement, located at the Sohar Industrial Estate.
“The acquisition of Sohar Cement forms part of Raysut’s ambitious plan to expand its capacity in 2019 to not only supply to its domestic higher demand Northern markets but also to service the rapidly growing markets, particularly in Africa and to focus on diversification and grow outside the Gulf region,” Ghose said.
Raysut Cement posted a growth of 26.6 per cent in revenues last year with the turnover recorded at RO91mn, a significant growth from RO71.8mn in 2017.