CCI Approves Transfer of 50% of the Shareholding of My Home Industries

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Mar 30, 2020

CCI Approves Transfer of 50% of the Shareholding of My Home Industries

On December 27, 2019, CCI approved the purchase of 50% of the shareholding of My Home Industries Private Limited (‘MHIPL’) by My Home Constructions Private Limited (‘MHCPL’), Jupally Real Estate Developers Private Limited (‘JREDPL’) and Dr. Rameswar Rao Jupally (collectively referred to as ‘My Home Companies’), from CRH India Investments B.V. (‘CRH/Seller’), through the execution of share purchase agreements[1].

My Home Companies are part of the My Home group (‘My Home Group’), which is active in a wide variety of sectors including construction and real estate development, manufacturing and supply of grey cement, power consultancy, power generation, power trading, media and broadcasting, pharmaceutical and education. After the proposed combination, the My Home Group would have sole control over MHIPL.

MHCPL is engaged in the business of construction of residential and commercial projects and real estate development, transportation and logistics sector and caters to the demand of MHIPL in transporting cement and raw materials. JREDPL is also a part of My Home Group, which is not currently engaged in any business activity in India.

MHIPL is also a part of My Home Group, and is an equally held joint venture between the Seller and the My Home Group, primarily engaged in the manufacturing and supply of grey cement. MHIPL is also engaged in power generation activities from waste heat and solar power sources for captive consumption.

CRH, registered in Amsterdam, is engaged in the manufacture and supply of a range of building materials and products used in construction and maintenance of infrastructure, housing and commercial projects, present in India through its 50% shareholding in MHIPL.

CCI approved the combination, since: (i) My Home Companies and their group is engaged in the logistics, construction and generation of power and related consultancy services, which are substantially for captive consumption within the My Home Group; and (ii) as far as the cement manufacturing and construction activities of the My Home Group are concerned, the projects are largely confined to the state of Telangana where they face significant competitive constraints from other players and do not pose any threat to competition in India.

[1] Combination Registration No. 2019/12/711.

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