UltraTech completes acquisition of Jaiprakash group cement biz

UltraTech Cement has completed the Rs 16,189 crore acquisition of Jaiprakash Associates' six integrated cement plants and five grinding units, having a capacity of 21.2 million tonnes.
The scheme implementation committee at its meeting held today "made effective the scheme of arrangement between UltraTech, Jaiprakash Associates, Jaypee Cement Corporation and their respective shareholders and creditors," the Aditya Birla Group company said in a statement.
It further added, "Consequently, the acquired cement plants of JAL and JCCL stand transferred to UltraTech".
Post acquisition UltraTech's grey cement manufacturing capacity has gone up to 93 million tonnes per annum and has become fourth largest cement player globally, excluding the Chinese players.

UltraTech Chairman Kumar Mangalam Birla said: "This move is essentially for geographic market expansion, enabling UltraTech's entry into the high growth markets of India where it needed greater reinforcement".
He further added that operations will be strengthened by the process and technological upgradation and also by enhancement in capacity utilisation.

UltraTech has now 18 Integrated Plants, 1 clinkerisation unit, 25 grinding units and 7 bulk terminals, augmenting its grey cement manufacturing capacity to 93 MTPA.
"This transaction, valued at Rs 16,189 crore, is the largest deal to be concluded so far, involving a major financial restructuring programme," the company said.

JP Associates had last year announced the sale of its cement business to the Kumar Mangalam Birla-led Ultratech, making the biggest consolidation in the cement sector.
The deal will help the Jaypee Group firm to reduce debt, which runs into thousands of crores of rupees. The deal was subject to various regulatory approvals.