Dalmia Bharat is set to acquire specific cement, clinker, and power plants belonging to JP Associates.

Dalmia Bharat, one of India’s leading cement manufacturers, has announced that it is set to acquire specific cement, clinker, and power plants belonging to JP Associates. The move comes as part of Dalmia Bharat’s strategy to expand its footprint in the Indian cement industry.

JP Associates is a well-known name in the Indian cement industry, with a strong presence in the northern and central regions of the country. The company has been looking to offload its non-core assets in order to reduce its debt burden. The acquisition of JP Associates’ cement, clinker, and power plants is expected to be a significant boost for Dalmia Bharat, which is already one of the largest cement manufacturers in India.

The deal, which is valued at around Rs 16,500 crore ($2.2 billion), will see Dalmia Bharat acquire six integrated cement plants and five grinding units. The cement plants have a combined capacity of 21.2 million tonnes per annum (MTPA), while the grinding units have a capacity of 4.8 MTPA. In addition, Dalmia Bharat will also acquire JP Associates’ 74% stake in the Bhilai Jaypee Cement joint venture, which has a capacity of 2.2 MTPA.

The acquisition is expected to give Dalmia Bharat a significant presence in the central and northern regions of India, where JP Associates has a strong foothold. It will also help the company increase its production capacity and strengthen its position in the highly competitive Indian cement industry.

“The acquisition of these cement assets is a significant milestone for Dalmia Bharat and is in line with our strategy to expand our footprint in the Indian cement industry. These assets will help us increase our production capacity, improve our geographic reach, and enhance our product portfolio. We are committed to building a sustainable and profitable business that creates value for all stakeholders,” said Puneet Dalmia, Managing Director of Dalmia Bharat.

The acquisition is subject to regulatory approvals and is expected to be completed by the end of the year. Dalmia Bharat has said that it will finance the acquisition through a mix of debt and equity. The company has also said that it is committed to maintaining a strong balance sheet and will continue to focus on reducing its debt levels.

The Indian cement industry has been facing several challenges in recent years, including overcapacity, low demand, and rising input costs. However, Dalmia Bharat has been able to weather these challenges and has emerged as one of the leading players in the industry. The company has a strong track record of innovation and has been at the forefront of adopting new technologies and processes to improve efficiency and reduce costs.

“We are confident that the acquisition of JP Associates’ cement assets will be a significant boost for our business. We have a strong track record of creating value for our stakeholders, and we believe that this acquisition will help us take our business to the next level. We remain committed to delivering sustainable and profitable growth for our shareholders,” said Mahendra Singhi, Group CEO of Dalmia Bharat.

The acquisition of JP Associates’ cement, clinker, and power plants is expected to be a game-changer for Dalmia Bharat. The company is already one of the largest cement manufacturers in India, with a strong presence in the eastern and southern regions of the country. The acquisition will help the company expand its geographic reach and increase its production capacity, making it a formidable player in the highly competitive Indian cement industry.

In conclusion, the acquisition of JP Associates’ cement, clinker, and power plants is a significant development for Dalmia Bharat. The move will help the company improve its geographic presence and production capacity. It also allows Dalmia Bharat to tap into a new market, as JP Associates’ assets are located in different parts of India than Dalmia’s existing operations.