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
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000