Dalmia Bharat unit to buy Jaiprakash's cement, power assets for $687 mln (updated)

Jaiprakash Associates

12/12/2022 10:25

(Adds details)
       BENGALURU, Dec 12 (Reuters) - Indian conglomerate Dalmia
Bharat's  DALB.NS  unit will acquire the cement and power
businesses of Jaiprakash Associates for 56.66 billion rupees
($686.70 million), including debt, as it looks to expand its
footprint into the country's central region.
    The deal includes cement capacity of 9.4 million tonnes
situated in the states of Madhya Pradesh, Uttar Pradesh and
Chhattisgarh, along with clinker capacity of 6.7 million tonnes
(MT) and thermal power plants of 280 MW, the companies said in a
statement. 
    The acquisition comes amid intense competition in domestic
cement industry as companies look to expand their footprint and
increase capacity.
    The country's top cement maker, UltraTech Cement  ULTC.NS ,
in June charted out a plan to increase its annual capacity to
159.25 million tonnes per annum to stave off competition from
the sector's newest entrant, Adani Group. 
    Dalmia said the deal was a significant step towards reaching
110 MT to 130 MT capacity by fiscal year 2031, with its capacity
currently pegged at 37 MT. 
($1 = 82.5100 Indian rupees)
 (Reporting by Nandan Mandayam in Bengaluru
Editing by Vinay Dwivedi)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))