The deal will help consolidate the Adani Group’s sudden dominance in the cement sector, which started after it bought Ambuja Cements Ltd. and ACC Ltd. in May from Switzerland’s Holcim Ltd., becoming India’s second-largest cement maker virtually overnight with an installed production capacity of 67.5 million tons annually.
Adani Group representatives declined to comment. Jaiprakash Associates representatives were not immediately available for a comment.
The board of Jaiprakash Associates has decided to divest the company’s “significant” cement business to help lower debt, according to stock exchange filing Monday. Separately, Jaiprakash Power Ventures said its board is looking to sell Nigrie cement grinding unit as well as other non-core assets, with naming any prospective buyers.Adani Group said last month it’s looking to expand its cement-making capacity to 140 million tons in five years and plans to inject 200 billion rupees in its newly acquired cement business.
Source: Moneycontrol