UltraTech Cement completes acquisition of Cement plants of Jaiprakash Associates Limited
1st July, 2017
Mumbai, 29th June, 2017 UltraTech Cement completes acquisition of Cement plants of Jaiprakash Associates Limited
The Scheme Implementation Committee of the Board of Directors of UltraTech Cement Limited, an Aditya Birla Group company, at its meeting held today, have made effective the Scheme of Arrangement between UltraTech, Jaiprakash Associates Limited (JAL), Jaypee Cement Corporation Limited (JCCL) and their respective shareholders and creditors, (“Scheme”) for the acquisition of their six integrated cement plants and five grinding units, spread across the states of Himachal Pradesh, Uttar Pradesh, Uttarakhand, Madhya Pradesh, and Andhra Pradesh, with a capacity of 21.2 million tons. Consequently, the acquired cement plants of JAL and JCCL stand transferred to UltraTech.
Says Mr. Kumar Mangalam Birla, Chairman, UltraTech – “This move is essentially for geographic market expansion, enabling UltraTech’s entry into the high growth markets of India where it needed greater reinforcement. The operations will be strengthened by the process and technological upgradation and also by enhancement in capacity utilization. Creating synergies in manufacturing, distribution and logistics offer many advantages. Furthermore, economies of scale and reduced lead-time to markets, will be achieved. These will enhance competitiveness, benefit consumers, and, in turn, create value for all our stakeholders”.
This transaction valued at Rs.16,189 crore ($ 2.5 bn) is the largest deal to be concluded so far, involving a major financial restructuring program, conducted by the ICICI led consortium of lenders to JAL. Alongside, SBI and Axis Bank actively supported this program.
After the acquisition, UltraTech has 18 Integrated Plants, 1 clinkerisation unit, 25 Grinding Units and 7 bulk terminals, augmenting its Grey Cement manufacturing capacity to 93 mtpa. With this UltraTech becomes the 4th largest cement player globally (excluding the Chinese players) and the largest player in India by an even larger margin.
The expanse of its presence in the country gives UltraTech the strategic ability to support and participate in the economic growth agenda of the Government of India.