Dalmia Bharat executes definitive agreements to acquire cement assets
Cement

Dalmia Bharat executes definitive agreements to acquire cement assets

According to an earlier announcement, Dalmia Bharat has executed definitive agreements with debt-ridden Jaiprakash Associates (JAL) to acquire the latter's cement assets. Dalmia Cement (Bharat) Limited (DCBL), a subsidiary of Dalmia Bharat, signed definitive agreements with JAL to acquire the JP Super Cement Plant in Uttar Pradesh for Rs 1,500 crore plus costs and expenses of up to Rs 190 crore. 

According to a regulatory update from Dalmia Bharat Ltd (DBL), this will be subject to various clearances and approvals related to the JP Super plant and mines. Furthermore, it is conditional on "fulfilling certain precedent conditions, including the final outcome of the pending arbitration between JAL and Ultratech Cement." On December 12, 2022, DBL had announced that it will acquire cement assets of Jaypee Group's flagship company JAL and its associate firm at an enterprise value of Rs 5,666 crore. 

In addition, DCBL executed a share purchase agreement for the acquisition of 74% of Bhilai Jaypee Cement (BJCL) at an enterprise value of Rs 666 crore. "DCBL has also signed a long-term lease agreement (with a term of seven years) with Jaiprakash Power Ventures Ltd for its Nigrie Cement Grinding Unit of 2 million MTPA (Nigrie Unit)," it said. 

DCBL has the option to purchase the Nigrie Unit at any time during the lease period for Rs 250 crore, according to DBL.DCBL announced in December that it had signed a "binding framework agreement for the acquisition of clinker, cement, and power plants from JAL and its associate company." The transaction includes a total cement capacity of 9.4 million tonnes per annum (MTPA), a clinker capacity of 6.7 MTPA, and two 280MW thermal power plants for a total enterprise value of Rs 5,666 crore. These assets are located in the Indian states of Madhya Pradesh, Uttar Pradesh, and Chhattisgarh. In a similar filing, JAL confirmed the developments and stated that it has "executed necessary agreements with DCBL" for the sale of the Jaypee Super Cement Plant in Uttar Pradesh for Rs 1,500 crore. 

It has also entered into a share purchase agreement with DCBL for the acquisition of 74% of BJCL for a total enterprise value of Rs 666 crore. "This agreement is subject to certain conditions precedent, including Jaypee Group's settlement with Assets Care & Reconstruction Enterprise Limited (ACRE) and SAIL's approval for taking Dalmia Group as the JV partner in place of Jaypee Group," the company stated. 

According to JAL, this follows the signing of a binding framework agreement and definitive agreements by JAL and its associate company with DCBL regarding the divestment of certain cement, clinker, and power plants for an enterprise value of Rs 5,666 crore, as part of the company's ongoing efforts to reduce its debt. The acquisition will help Dalmia expand its footprint into the central region.

According to an earlier announcement, Dalmia Bharat has executed definitive agreements with debt-ridden Jaiprakash Associates (JAL) to acquire the latter's cement assets. Dalmia Cement (Bharat) Limited (DCBL), a subsidiary of Dalmia Bharat, signed definitive agreements with JAL to acquire the JP Super Cement Plant in Uttar Pradesh for Rs 1,500 crore plus costs and expenses of up to Rs 190 crore. According to a regulatory update from Dalmia Bharat Ltd (DBL), this will be subject to various clearances and approvals related to the JP Super plant and mines. Furthermore, it is conditional on fulfilling certain precedent conditions, including the final outcome of the pending arbitration between JAL and Ultratech Cement. On December 12, 2022, DBL had announced that it will acquire cement assets of Jaypee Group's flagship company JAL and its associate firm at an enterprise value of Rs 5,666 crore. In addition, DCBL executed a share purchase agreement for the acquisition of 74% of Bhilai Jaypee Cement (BJCL) at an enterprise value of Rs 666 crore. DCBL has also signed a long-term lease agreement (with a term of seven years) with Jaiprakash Power Ventures Ltd for its Nigrie Cement Grinding Unit of 2 million MTPA (Nigrie Unit), it said. DCBL has the option to purchase the Nigrie Unit at any time during the lease period for Rs 250 crore, according to DBL.DCBL announced in December that it had signed a binding framework agreement for the acquisition of clinker, cement, and power plants from JAL and its associate company. The transaction includes a total cement capacity of 9.4 million tonnes per annum (MTPA), a clinker capacity of 6.7 MTPA, and two 280MW thermal power plants for a total enterprise value of Rs 5,666 crore. These assets are located in the Indian states of Madhya Pradesh, Uttar Pradesh, and Chhattisgarh. In a similar filing, JAL confirmed the developments and stated that it has executed necessary agreements with DCBL for the sale of the Jaypee Super Cement Plant in Uttar Pradesh for Rs 1,500 crore. It has also entered into a share purchase agreement with DCBL for the acquisition of 74% of BJCL for a total enterprise value of Rs 666 crore. This agreement is subject to certain conditions precedent, including Jaypee Group's settlement with Assets Care & Reconstruction Enterprise Limited (ACRE) and SAIL's approval for taking Dalmia Group as the JV partner in place of Jaypee Group, the company stated. According to JAL, this follows the signing of a binding framework agreement and definitive agreements by JAL and its associate company with DCBL regarding the divestment of certain cement, clinker, and power plants for an enterprise value of Rs 5,666 crore, as part of the company's ongoing efforts to reduce its debt. The acquisition will help Dalmia expand its footprint into the central region.

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?