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
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?