Dalmia Bharat to buy Jaypee Cement for Rs 56.66 billion
Cement

Dalmia Bharat to buy Jaypee Cement for Rs 56.66 billion

Dalmia Bharat said that its cement subsidiary will be acquiring the cement and power plants of Jaiprakash Associates for Rs 56.66 billion, marking an end to months of speculation over potential suitors for the assets.

The assets put together have a cement manufacturing capacity of 9.4 million tonne, clinker capacity of 6.7 million tonnes and thermal power plants of 280 MW and are situated in Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.

The new plants will take the cement manufacturing capacity of Dalmia Cement to 46.3 MTPA from the present 35.9 MTPA, as per its website. This will take the cement maker closer to its target of achieving 75 MTPA capacity by FY27 and upwards of 110 MTPA by FY31.

It will also put the fourth-largest cement maker in India close to third-placed Shree Cement in terms of manufacturing capacity. UltraTech Cement and the Adani Group – who recently acquired Ambuja Cements and ACC – are the leading cement makers in India.

Debt-laden Jaiprakash Associates had said in a regulatory filing earlier this year that it would be divesting its cement assets. Earlier, media reports claimed the Adani Group was the frontrunner for acquiring these assets.

For Dalmia Cement, the acquisition will expand its footprint in the central region, furthering its target of being a pan-India player.

The transaction is yet another major consolidation in India’s highly fragmented cement sector. The acquisition of ACC and Ambuja Cements by the Adani Group earlier this year and Gautam Adani’s subsequent announcement of aggressive expansion plans jolted the cement industry into action. Incumbent leading players have followed suit and announced similarly aggressive expansion plans.

Also Read
Demand for electricity across India could rise 7% in FY23
Parliament approves Energy Conservation amendment bill

Dalmia Bharat said that its cement subsidiary will be acquiring the cement and power plants of Jaiprakash Associates for Rs 56.66 billion, marking an end to months of speculation over potential suitors for the assets. The assets put together have a cement manufacturing capacity of 9.4 million tonne, clinker capacity of 6.7 million tonnes and thermal power plants of 280 MW and are situated in Madhya Pradesh, Uttar Pradesh, and Chhattisgarh. The new plants will take the cement manufacturing capacity of Dalmia Cement to 46.3 MTPA from the present 35.9 MTPA, as per its website. This will take the cement maker closer to its target of achieving 75 MTPA capacity by FY27 and upwards of 110 MTPA by FY31. It will also put the fourth-largest cement maker in India close to third-placed Shree Cement in terms of manufacturing capacity. UltraTech Cement and the Adani Group – who recently acquired Ambuja Cements and ACC – are the leading cement makers in India. Debt-laden Jaiprakash Associates had said in a regulatory filing earlier this year that it would be divesting its cement assets. Earlier, media reports claimed the Adani Group was the frontrunner for acquiring these assets. For Dalmia Cement, the acquisition will expand its footprint in the central region, furthering its target of being a pan-India player. The transaction is yet another major consolidation in India’s highly fragmented cement sector. The acquisition of ACC and Ambuja Cements by the Adani Group earlier this year and Gautam Adani’s subsequent announcement of aggressive expansion plans jolted the cement industry into action. Incumbent leading players have followed suit and announced similarly aggressive expansion plans. Also Read Demand for electricity across India could rise 7% in FY23 Parliament approves Energy Conservation amendment bill

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?