Dalmia Bharat to acquire Jaiprakash Associate’s cement plants

Dalmia Cement, a wholly owned subsidiary of Dalmia Bharat, has entered into an agreement to acquire Jaiprakash Associates’ cement, clinker, and power plants, with a total cement capacity of 9.4 million tonnes (along with a Clinker capacity of 6.7 million tonne and Thermal Power plants of 280MW). The plants are located in the states of Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.

The plants were purchased for a total enterprise value of Rs 5,666 crore. The transaction is subject to due diligence, approvals from Jaiprakash Associates’ lenders/JV partner, and regulatory authorities.

This should bode well for Dalmia Bharat’s subsidiary, Dalmia Cement. The acquisition of Jaypee assets would allow Dalmia to enter high-growth and new markets in Uttar Pradesh and Madhya Pradesh (Central region), allowing it to diversify away from its existing markets in the South and East. It also has a presence in the North Eastern and Western regions.

The acquisition will allow Dalmia to expand its footprint into the Central Region and will be a significant step towards realising its vision of becoming a Pan India Cement company with a capacity of 75 million tonne by FY27 and 110130 million tonne by FY 2031.

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