Cement facilities owned by Jaiprakash Associates are purchased by Dalmia Bharat for over Rs 5,700 crore.

 

Dalmia Cement, a wholly owned subsidiary of Dalmia Bharat, has agreed to purchase Jaiprakash Associates' cement, clinker, and power plants, which have a combined capacity of 9.4 million tonnes of cement (along with a Clinker capacity of 6.7 million tonne and Thermal Power plants of 280MW). Madhya Pradesh, Uttar Pradesh, and Chhattisgarh are the locations of the factories.

The plants were purchased at a total cost of Rs. 5,666 crore.

Due diligence, necessary clearances from lenders/JV partners of Jaiprakash Associates, and regulatory agencies are all requirements for the acquisition.

In order to minimise debt, Jaiprakash Associates and Jaiprakash Power Ventures revealed plans to sell off several non-core assets and their cement company back in October.

The Jaypee Group (including Jaiprakash Power Ventures) now has an installed cement capacity of 10.55 million tonnes per year and 339MW of captive power, according to the annual report of Jaiprakash Associates.

The central Indian market is where more than half of Jaypee Group's cement production capacity is found. 1.2 MTPA (in South India) of the total cement capacity is being expanded, albeit it has been put on hold for some time.