JSW Cement
NEW DELHI: Since the entry of billionaire Gautam Adani promoted Adani Group in the cement sector, there seems to be an uptick in bigger players eyeing to acquire smaller players or their manufacturing units to expand output capacity.
India Cements on Monday said it is inking a deal with JSW Cement to divest its entire stake in Spring way Mining Pvt Ltd (SMPL) for nearly Rs 477 crore. Besides JSW, two of the country’s top cement producers- Adani Cement and Ultratech Cement, were also reported in the race to acquire SMPL units located in Madhya Pradesh.
JSW Cement has so far paid Rs 373.87 crore as part of the deal and the remaining Rs 103 crore will be paid on or before December 31, 2022. As per the Chennai-based India Cements, SMPL has a net worth of Rs 14.22 crore and the company had a nil turnover in the financial year 2021-22.
SMPL, however, owns limestone-bearing land, a key raw material for cement, in Madhya Pradesh’s Panna district and is in the process of setting up of a cement plant in the state’s Damoh district.
This sale by India Cements is aimed towards reducing its debt which stood at over Rs 3,000 as of March 2022. Adani Group, which has set its eye to become the country’s top Cement player by 2030, is in talks to buy the cement businesses of debt-laden Jaypee Group for about Rs 5,000 crore.
Sources said Adani group is in advanced talks with the management of Jaiprakash Associates and the deal could be announced shortly. The Adanis had recently forayed into the cement sector with the acquisition, pegged at USD 10 billion, of Ambuja Cements and ACC to become the nation’s second-largest cement maker with an annual production capacity of 67.5 million tonnes. Jaypee group had sold its cement business to UltraTech.
Cement companies on an acquisition spree
India Cements on Monday said it is inking a deal with JSW Cement to divest its entire stake in Spring way Mining for nearly Rs 477 crore. Besides JSW, two of the country’s top cement producers- Adani Cement and Ultratech Cement, were also reported in the race to acquire SMPL units located in Madhya Pradesh
