UltraTech keen to take over JP Super despite new deal
Cement

UltraTech keen to take over JP Super despite new deal

UltraTech Cement is "keen to take over" Jaiprakash Associates' Dalla Super cement asset in Uttar Pradesh, once the arbitration process is complete, according to Atul Daga, executive director and CFO at UltraTech. The Dalla asset has a 2.3 million tonne clinker capacity and a limestone mine capacity of 100 million tonnes, and was part of a larger cement deal that UltraTech agreed to buy from Jaiprakash Associates in 2016.

Jaiprakash Associates has already entered into an agreement with Dalmia Cement Bharat for the Dalla asset, for which Dalmia Cement has executed a definitive agreement to acquire JP Super for INR 1,500 crore and expenses of up to INR 190 crore. However, the agreement is "subject to clearances and approvals, including the final outcome of the pending arbitration between Jaiprakash Associates and UltraTech," says Dalmia Cement.

The arbitration between the two companies centres on the failed redemption of redeemable preference shares (RPS) of INR 1,000 crore issued by UltraTech in favour of Jaiprakash Associates in June 2017. The shares were placed in an escrow and subject to certain precedents related to the Dalla Super deal. UltraTech claims that the redemption failed due to inaction on the part of Jaiprakash Associates in signing the joint instruction notice, while Jaiprakash Associates argues that "UltraTech’s right to obtain the transfer and vesting of Jaypee Super Plant of Jaiprakash Associates along with the mines under Blocks 1, 2, 3 & 4 in Sonebhadra, Uttar Pradesh, stands ceased," due to UltraTech's failure to redeem the RPS issued in its favour and its failure to exercise the option to waive the fulfilment of relevant conditions within the permissible time.

Jaiprakash Associates announced a fresh deal for the assets with Dalmia Cement in December 2022, as part of a larger deal worth an enterprise value of INR 5,666 crore. The definitive agreements were signed in April, with Dalmia Bharat executing the deal in three tranches, with the third tranche comprising the Dalla asset.

According to analysts with Asian Markets Securities, the Dalla asset is important for its access to limestone reserves. "Uttar Pradesh doesn't have limestone except Super Dalla complex of UltraTech Cement (erstwhile with Jaiprakash Associates) and hence, no additional clinker capacity can be set up," they say. Analysts note that the deal is crucial for Dalmia Cement due to similar clinker-related reasons.

Also Read
Asian Paints' net profit increased by 44%
Noida authority team to visit Gujarat & Haryana


UltraTech Cement is keen to take over Jaiprakash Associates' Dalla Super cement asset in Uttar Pradesh, once the arbitration process is complete, according to Atul Daga, executive director and CFO at UltraTech. The Dalla asset has a 2.3 million tonne clinker capacity and a limestone mine capacity of 100 million tonnes, and was part of a larger cement deal that UltraTech agreed to buy from Jaiprakash Associates in 2016. Jaiprakash Associates has already entered into an agreement with Dalmia Cement Bharat for the Dalla asset, for which Dalmia Cement has executed a definitive agreement to acquire JP Super for INR 1,500 crore and expenses of up to INR 190 crore. However, the agreement is subject to clearances and approvals, including the final outcome of the pending arbitration between Jaiprakash Associates and UltraTech, says Dalmia Cement. The arbitration between the two companies centres on the failed redemption of redeemable preference shares (RPS) of INR 1,000 crore issued by UltraTech in favour of Jaiprakash Associates in June 2017. The shares were placed in an escrow and subject to certain precedents related to the Dalla Super deal. UltraTech claims that the redemption failed due to inaction on the part of Jaiprakash Associates in signing the joint instruction notice, while Jaiprakash Associates argues that UltraTech’s right to obtain the transfer and vesting of Jaypee Super Plant of Jaiprakash Associates along with the mines under Blocks 1, 2, 3 & 4 in Sonebhadra, Uttar Pradesh, stands ceased, due to UltraTech's failure to redeem the RPS issued in its favour and its failure to exercise the option to waive the fulfilment of relevant conditions within the permissible time. Jaiprakash Associates announced a fresh deal for the assets with Dalmia Cement in December 2022, as part of a larger deal worth an enterprise value of INR 5,666 crore. The definitive agreements were signed in April, with Dalmia Bharat executing the deal in three tranches, with the third tranche comprising the Dalla asset. According to analysts with Asian Markets Securities, the Dalla asset is important for its access to limestone reserves. Uttar Pradesh doesn't have limestone except Super Dalla complex of UltraTech Cement (erstwhile with Jaiprakash Associates) and hence, no additional clinker capacity can be set up, they say. Analysts note that the deal is crucial for Dalmia Cement due to similar clinker-related reasons. Also Read Asian Paints' net profit increased by 44% Noida authority team to visit Gujarat & Haryana

Next Story
Infrastructure Urban

Tata Capital Secures USD 16 Million GCF Fund to Boost Green Start-ups

Tata Capital Limited (TCL), the flagship financial services arm of the Tata Group, has received a first-of-its-kind USD 15.85 million revolving fund from the Green Climate Fund (GCF) under the newly approved BEACON INDIA Programme. The initiative, implemented in partnership with the Small Industries Development Bank of India (SIDBI) and TREC-STEP, aims to support early-stage climate-tech start-ups across India.In addition to the revolving facility, the GCF has extended a USD 3 million grant to make financing more accessible and affordable for climate-focused ventures. The revolving structure e..

Next Story
Infrastructure Urban

Maiden Forgings Becomes Approved Supplier to OFB Murad Nagar

Maiden Forgings Limited (MFL), one of India’s leading producers of bright steel bars and wires, has been officially registered as an approved supplier with the Ordnance Factory Board (OFB), Murad Nagar, under the Centralised Vendor Registration process.This recognition adds to MFL’s existing registration with OFB Kolkata, marking another strategic step in its deepening engagement with India’s defence manufacturing ecosystem. With this new approval, the company strengthens its foothold in the Business-to-Government (B2G) segment and expands its participation in the nation’s defence prod..

Next Story
Infrastructure Transport

DCIL Signs MoUs Worth Rs 176.45 Billion to Boost Maritime Modernisation

The Dredging Corporation of India Limited (DCIL) has signed 22 Memorandums of Understanding (MoUs) with 16 organisations, collectively worth Rs 176.45 billion, during the India Maritime Week 2025 held at the Bombay Exhibition Centre, Mumbai, from 27–31 October.DCIL operates under a consortium of four major ports — Visakhapatnam Port Authority (VPA), Paradip Port Authority (PPA), Jawaharlal Nehru Port Authority (JNPA), and Deendayal Port Authority (DPA) — under the aegis of the Ministry of Ports, Shipping & Waterways (MoPSW).The MoUs include collaborations with leading ports such ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Get CW App