US private equity major Kohlberg Kravis Roberts (KKR) has invested Rs 500 crore as the first tranche of its proposed investment, in Avnija, a wholly-owned subsidiary of Dalmia Bharat Enterprise Limited (DBEL). In May, DBEL and KKR had entered into definitive agreements under which KKR agreed to invest up to Rs 750 crore.
“While the company is well capitalised today, the additional capital enables us to aggressively consolidate our existing market position, de-leverage our balance sheet and pursue attractive organic and inorganic growth options, given the current downcycle,” said Puneet Dalmia, managing director, Dalmia Cement.
Avnija has cement manufacturing facilities at Dalmiapuram and Ariyalur in Tamil Nadu and at Kadapa in Andhra Pradesh, with a total capacity of 9 mtpa. The company also holds 45.4 pre cent stake in OCL India Limited, which has a capacity of 5.3 mtpa, and owns Dalmia Cement Ventures Limited which has upcoming greenfield projects of 10 mtpa across the country.