Calcutta, April 3: Dalmia Bharat Group is consolidating its business in the east. The cement major, which has units in southern and eastern India, including Bengal, has announced an amalgamation of OCL India Ltd and Dalmia Cement East Ltd with Odisha Cement Ltd.

The group's cement production capacity is 25 million tonnes (mt). More than half of the capacity is located in the east and the Northeast. After the amalgamation of OCL India and Dalmia Cement East, Odisha Cement will have a combined capacity of 9.3mt.

The amalgamation, according to company officials, will help in the consolidation of business and operations in the region into one entity and simplify the group's corporate structure.

Officials also said there would be the benefit of economies of scale, reduction in overhead costs and synergistic integration of business operations.

OCL India is a listed company and around 74.7 per cent its paid-up capital is held by Dalmia Cement (Bharat) Ltd (DCBL).

Odisha Cement is a wholly owned subsidiary of OCL India. As part of the amalgamation, OCL India will merge with Odisha Cement. Shareholders of OCL will be issued one fully paid-up equity share of face value Rs 10 in Odisha Cement for every one fully paid-up equity share of face value Rs 2 held in OCL India. The equity shares of Odisha Cement will be listed on the bourses.

"The post-merger equity shareholding pattern of Odisha Cement shall be the pre-merger mirror image of OCL's equity shareholding," the company said in a statement to the BSE.

Further, three subsidiaries of DCBL - Dalmia Bharat Cement Holdings Ltd, Shri Rangam Securities and Holdings Ltd and Dalmia Cement East Ltd (Bokaro) - will be amalgamated with Odisha Cement Ltd. Odisha Cement will subsequently be renamed as OCL India Ltd.

The company said Adhunik Cement, which was acquired in 2012-13, would be merged with DCBL and power assets under Dalmia Cement Bharat Power Ventures would be transferred to DCBL.