Coal news and updates

UltraTech buys Jaypee’s cement biz for Rs 16,500 cr

The largest deal in the Indian cement sector, worth Rs 16,500 crore, took place as UntraTech agreed to acquire Jaypee Group’s cement capacity assets. Ultratech is the flagship of Kumar Mangalam Birla while Jaypee Group is the third-largest cement producer in India.

The total production capacities of cement plants are 22.4 million tons per annum (mtpa) and the facilities are spread over Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka, as per the release sent to the Bombay Stock Exchange. 

The deal will also include a 4 mpta plant under implementation at a cost of Rs 470 crore.

It was further mentioned that the acquisition, which is subject to definitive agreements and regulatory approvals as may be required, will help UltraTech’s cement capacity to reach 90.7 mtpa from the current level of 68.3 mtpa.

Manoj Gaur, Executive Chairman, Jaiprakash Associate Ltd (JAL), said it has now been considered appropriate to divest a significant portion of the total cement capacity in favour of a company which is not only India's largest cement player but would also be the first cement company in India to achieve the coveted 100-million-ton mark in the cement segment.