UltraTech Cement, an arm of the Aditya Birla Group, has agreed to acquire two integrated cement plants from the debt-laden Jaiprakash Associates (JAL) for an enterprise value of Rs 5,400 crore, the two firms said in a statement issued on Monday evening.
The plants, which have a combined capacity of 4.9 million tonnes per annum (mtpa), are located at Bela and Sidhi in Madhya Pradesh. These cement plants will help UltraTech gain a pan-India footprint as before this acquisition it did not have a presence in the Satna cluster of Madhya Pradesh, which supplies cement to central and eastern Uttar Pradesh and Bihar.
With this acquisition, UltraTech has achieved a domestic cement capacity of 65 mtpa and extended its lead over the Holcim Group, which has a combined capacity of 60.1 mtpa in India through its two subsidiaries ACC and Ambuja.
Further details including the portion of debt associated with the cement plants that would be absorbed and the cash component, would be worked out later. But at the enterprise value ascribed to the deal, the enterprise value per tonne of cement made by these two assets works out to around $140, said OP Puranmalka, MD and CEO of UltraTech. FE
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines