According to Dalmia this is a significant step towards realising the company’s vision to emerge as a pan-India cement company
Dalmia Cement Bharat Ltd (DCBL), a wholly owned subsidiary of Dalmia Bharat Ltd, has signed a pact to acquire the cement, clinker and power plants from Jaiprakash Associates Ltd (JAL) and its associate company for an enterprise value of Rs 5,666 crore. According to a regulatory filing on Monday, the deal includes a total cement capacity of 9.4 Million tones (MnT) per annum, along with clinker capacity of 6.7 MnT and thermal power plants of 280MW at an enterprise value of Rs 5,666 crore.
Dalmia said the plants acquired are situated in Madhya Pradesh, Uttar Pradesh and Chhattisgarh and will help the company to expand its footprint into the central region. “This is also a significant step towards realising our vision to emerge as a pan-India cement company with a capacity of 75 MnT by FY27 and 110-130 MnT by FY31,” the company added.
Dalmia said the transaction is subject to due diligence, requisite approvals from lenders/JV partner of Jaiprakash Associates Limited and regulatory authorities. At present, JAL has an aggregate capacity of around 6 million tonnes per annum (MTPA) and Jaiprakash Power Ventures Ltd has around 4 MTPA. Jaiprakash Associates and Jaiprakash Power Ventures had earlier announced plans to divest their cement business as well as some non-core assets to reduce debt.