Dalmia Cement Bharat Limited has signed agreements to acquire substantial cement assets from Jaiprakash Associates for an enterprise value of INR 3,230 crore, aiming to strengthen its position in the Indian cement market.

Information on the Target

Dalmia Cement Bharat Limited (DCBL) has entered into definitive agreements with Jaiprakash Associates Limited (JAL) and its affiliates for the acquisition of significant cement assets. This acquisition includes cement production capacity of 5.2 million tonnes per annum (MnTPA), clinker grinding capacity of 3.3 MnTPA, and thermal power plants (TPP) with a total capacity of 280 megawatts (MW). Notably, this deal includes the transfer of a 180 MW TPP to a Special Purpose Vehicle (SPV), in which DCBL will hold a 57% stake.

The enterprise value of this transaction is set at INR 3,230 crore. Following the execution of these definitive agreements, both parties are actively working towards finalizing the remaining components of the acquisition, as outlined in the Framework Agreement dated December 12, 2022. The successful completion of the transaction will depend on fulfilling certain preconditions, which include obtaining approvals from JAL's lenders and other regulatory authorities. The involved parties are committed to completing this process in the coming months.

Industry Overview in India

The Indian cement industry is a vital sector contributing to the nation's infrastructure development and economic growth. With urbanization, housing demand, and government infrastructure projects on the rise, the cem