Dalmia Bharat to acquire Jaiprakash Associates’ cement assets for Rs 5,666 crore

New Delhi-based cement company, Dalmia Cement (Bharat) Ltd (DCBL), announced on Monday that it will acquire Jaiprakash Associates’ cement assets for Rs 5,666 crore. The cement assets include clinker, cement and power plants. 

The company said in a filing, “Dalmia Cement (Bharat) Limited (DCBL), wholly owned subsidiary of Dalmia Bharat Limited has today entered into a binding Framework Agreement for the acquisition of Clinker, Cement and Power Plants from Jaiprakash Associates Limited and its associate having total cement capacity of 9.4 MnT (along with clinker capacity of 6.7 MnT and thermal power plants of 280 MW) at an enterprise value of Rs 5,666 Cr.”

The assets, it said, are situated in the states of Madhya Pradesh, Uttar Pradesh and Chattisgarh.  

Dalmia Bharat stated the acquisition will enable it to expand its footprint into the central region, and is a move towards its vision of becoming a pan India cement company with a capacity of 75 MnT by FY27, and 110-130 MnT by FY31. 

The deal is subject to approvals and due diligence from lenders and JV partner of Jaiprakash Associates and regulatory authorities. 

Founded in 1939, Dalmia Cement is the fourth-largest cement manufacturing company in the country by installed capacity. It has its presence in 10 states and has 14 manufacturing units. It said that it has one of the lowest carbon footprint in the cement world globally. 

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