Nirma Ltd. is considering partnering with either Apollo Global Management Inc. or Bain Capital to bid for the cement unit of Indian conglomerate Emami Group, according to people with knowledge of the matter.
Nuvoco Vistas Corp. a cement unit of detergent maker of Nirma, has held separate discussions with the private equity firms for a potential offer for Emami Cement, said the people, who asked not to be identified as the information isn’t public.
Nuvoco is among the bidders for Emami Cement, which has picked Arpwood Capital Ltd. and Credit Suisse Group AG to manage the sale of the unit as Bloomberg News previously reported. The company is seeking a valuation of about $1 billion, people familiar with the matter have said.
Emami Cement runs three manufacturing plants in India and is setting up another one in Kalinganagar, Odisha, according to its website. The company has more than 50 branches across the country, its website shows.
R.S. Agarwal and R.S. Goenka, who own Emami Group, are joining tycoons including Anil Ambani and Subhash Chandra in selling assets to pare debt as a cash crunch in Indian markets has increased funding costs.
Deliberations are ongoing with Nuvoco still exploring options for its bid, the people said. The companies could also decide against an offer, they said. A spokesman for AION Capital Partners, a private equity fund jointly owned by Apollo Global Management and ICICI Venture Funds Management, declined to comment, while representatives for Bain, Emami and Nuvoco also declined to comment.