Dalmia Cement Bharat Ltd (DCBL) Thursday said it has fully acquired the Bokaro Jaypee Cement Ltd (BoJCL) from Steel Authority of India Ltd (SAIL) for Rs.1,150 crore which will give it a market share of 13 percent in east India.
"In March this year, we acquired 74 percent stake in the Bokaro plant when it was producing 1.5 million tonne of cement every year. Now we have fully acquired the plant," Mahendra Singhi, group CEO (cement), Dalmia Bharat Group told media persons here.
Dalmia Bharat Group is the holding company of DCBL.
This is the third such move by DCBL in the last two years. Previously, it had bought Kolkata based Adhunik Cement with manufacturing units in Meghalaya and raised its holding substantially in Calcom Cement which it acquired thereafter.
With the acquisition of the 2.1 million tonne capacity manufacturing unit in Bokaro, DCBL - along with its associate and subsidiary companies - will have a capacity to produce 21 million tonnes presently. It is aiming to reach 24 million tonne production by the end of fiscal 2015.
Having a secured slag supply from a steel plant operated by SAIL, the Bokaro plant last year had a utilisation capacity of 72 percent. The plant will cater to the needs of West Bengal, Bihar and Jharkhand.
"We have become the largest producer of Portland Slag Cement in the country and have a 4.5 percent national market share. With the acquisition of the Bokaro plant, our market share in West Bengal will cross 10 percent by March 2015," Singhi said.
The company is further planning to expand its presence in the western region with a plant underway at Belgaum in Karnataka and another project at Umrangshu in Assam set to be completed by 2015 end.
Also, it has received a mining lease for limestone in Chittorgarh of Rajasthan.