Aditya Birla Group acquires Jaypees Gujarat cement unit

Announcing the deal,Kumar Mangalam Birla,chairman,UltraTech Cement Limited,said,With this acquisition of 4.8 mtpa,the companys current capacity increases to 59 mtpa. With projects underway,it will stand raised to 70 mtpa by 2015. Despite the prevailing muted growth of the industry,we believe the long term fundamentals and growth prospects remain intact. We will add more capacities in coming years.

Birla said the acquisition will be funded through equity of Rs 150 crore,debt worth Rs 2,000 crore and the remainder of Rs 1,650 crore through internal accruals. Jaypee Cement had Rs 350 crore of carry forward losses.

The Jaypee Group said the sale of the Gujarat cement plant will reduce its debt by Rs 3,600 crore in the current financial year. JP Associates debt will come down by around Rs 3,600 crore from the existing Rs 23,000 crore, Jaypee Group chairman Manoj Gaur said,adding the groups total debt currently stands at Rs 55,000 crore.

UltraTech shares closed 1.60 per cent higher at Rs 1,732.30 on the BSE on Wednesday.

R3,800 cr deal

Aditya Birlss UltraTech Cement will pay Rs 3,800 crore for the 4.8 mtpa plant in Gujarat

The plant consists of a 57.5 MW coal-based thermal power plant,limestone reserves of over 90 years and a captive jetty

Jaypee said the sale will reduce its debt by Rs 3,600 crore this fiscal