Key Highlights
- Dalmia Bharat signed a Business Transfer Agreement to acquire 5.2 MnTPA cement capacity from Jaiprakash Associates.
- The acquired cement assets are located in Madhya Pradesh at Rewa Churk and Sidhi.
- The transaction value stands at ₹2,850 crore including clinker and thermal power assets.
- Dalmia Bharat’s total cement capacity will increase to 54.7 MnTPA after completion of the deal.
- The company expects overall cement capacity to reach 66.7 MnTPA by Q2-Q3 FY28 through ongoing expansion projects.
Dalmia Cement Bharat Limited a wholly owned subsidiary of Dalmia Bharat Limited has signed a Business Transfer Agreement with Jaiprakash Associates Limited and Adani Infra India Limited to acquire cement assets in Central India.
The acquisition includes cement plants located at Rewa Churk and Sidhi in Madhya Pradesh with a combined cement capacity of 5.2 MnTPA and clinker capacity of 3.3 MnTPA. The transaction has been valued at ₹2,850 crore.
The acquired assets also include 99 MW of thermal power capacity and railway siding infrastructure at Rewa and Chunar along with a common railway siding at Churk.
Dalmia Bharat Capacity To Rise After Acquisition
Following the completion of the transaction Dalmia Bharat’s total cement manufacturing capacity is expected to increase to 54.7 MnTPA.
The company also stated that ongoing expansion projects at Belgaum Pune and Kadapa are expected to further increase total capacity to 66.7 MnTPA by Q2-Q3 FY28.
According to the company the transaction is likely to be completed within two weeks.
Background Of The Transaction
Dalmia Bharat had earlier entered into framework agreements with Jaiprakash Associates in December 2022 for the acquisition of certain business assets. However the process could not be completed after Jaiprakash Associates was admitted into insolvency proceedings under the Insolvency and Bankruptcy Code.
After the approval of Adani Group’s resolution plan for Jaiprakash Associates Dalmia Bharat reconsidered the earlier agreements and executed a fresh Business Transfer Agreement with Jaiprakash Associates and Adani Infra India Limited.
The company stated that the new agreement aims to settle pending disputes and legal proceedings linked to the earlier framework agreement and arbitration matters.
Company Says Acquisition Supports Expansion Strategy
Dalmia Bharat said the acquisition aligns with its long-term strategy of strengthening its position as a pan-India cement manufacturer. The company added that the acquired assets offer faster market access in Central India compared to a greenfield project and provide opportunities for operational expansion through debottlenecking and brownfield development.
Puneet Dalmia Managing Director and CEO of Dalmia Bharat Limited said the acquisition would support the company’s expansion in high potential Central Indian markets and help improve operational efficiencies due to the proximity of the assets to Dalmia Bharat’s existing facilities.