SAGARCEMENTSLIMITED

www.sagarcements.in

For immediate release

Board of Directors in principle approval for 100% stake in

BMM Cements Limited
Hyderabad, September 24, 2014:

Sagar Cements Limited (SCL), one of the most efficient cement manufacturers in the
country, announced that its Board of Directors has today accorded its in principle
approval for the acquisition of 100% equity stake in BMM Cements Limited, which owns a
cement plant of 1 million tonne capacity p.a. and a captive thermal power plant of 25 MW
capacity in Gudipadu near Tadipatri Anantapur District in the state of Andhra Pradesh.
This company which has an Enterprise Value of Rs. 540 crores, has limestone reserves
of around 155 Million Tonnes.

Commenting on the said in principle approval, Mr Sreekanth Reddy, Executive

Director, Sagar Cements, said: The proposed acquisition of BMM Cements comes at
an opportune time wherein the demand environment and pricing in our region of
operations looks encouraging. The two companies are wholly complementary
geographically with considerable potential for synergies. We intend to continue to drive
growth and explore both inorganic and organic opportunities that will enhance long-term
stakeholder value.

Successful completion of the transaction is subject to further negotiation to arrive at the

acquisition price and other terms and conditions.

The proposed acquisition by SCL is the result of a strategic decision taken to leverage on
the Companys strengths and explore opportunities to expand scale and presence in
South Indian markets and create value for its stakeholders. With this acquisition, Sagar
Cements group total cement capacity will go up to 3.75 million TPA from its existing
capacity of 2.75 Million Tonnes, with 25 MW coal based thermal power plant. After the

Regd.Office:PlotNo.111,RoadNo.10,JubileeHills,Hyderabad500033,India
CIN:L26942TG1981PLC002887
Phone:+914023351571,23356572Fax:+914023356573Email:info@sagarcements.in

proposed acquisition, cement produced from BMM plant is proposed to be marketed

under the brand Sagar. The Company will leverage its marketing and distribution
network to enhance its production capacities, reduce overheads and reach out to wider
markets.

About Sagar Cement Limited

Sagar Cements Limited (SCL) is one of the most efficient cement producers in India with
an over 25 year experience. The Company commenced its operations in 1985 with clinker
producing capacity of 0.06 MTPA. The Companys clinker capacity is 2.1 million TPA and
its cement capacity is 2.75 million TPA. It manufactures various varieties of cement and
all its products are sold under the brand name of Sagar. The Companys registered office
is in Hyderabad and plant is located in the Nalgonda district of Andhra Pradesh.
Limestone requirement of the plant is met from the Companys captive mine located
adjacent to the plant.

For further information contact:

Prasad Kolluru

Gavin Desa / Ishan Selarka

Sagar Cements Ltd.

CDR India

Tel.: +91 40 2335 1571

Tel.: +91 22 6645 1237 / 1232

E-mail: prasadk@sagarcements.in

E-mail: gavin@cdr-india.com
ishan@cdr-india.com

Safe harbour:
Certain matters discussed in this communication may contain statements regarding the Companys market opportunity and
business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are
not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are
difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and
of the economies of various international markets, the performance of the cement industry in India and world-wide,
competition, the Companys ability to successfully implement its strategy, the Companys future levels of growth and
expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the
Companys market preferences and its exposure to market risks, as well as other risks. The Companys actual results,
levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by
this presentation. The Company assumes no obligation to update any forward-looking information contained in this
communication. Any forward-looking statements and projections made by third parties included in this communication are
not adopted by the Company and the Company is not responsible for such third party statements and projections.

Regd.Office:PlotNo.111,RoadNo.10,JubileeHills,Hyderabad500033,India
CIN:L26942TG1981PLC002887
Phone:+914023351571,23356572Fax:+914023356573Email:info@sagarcements.in