UltraTech locks acquisition of Jaiprakash Cement Group Business

UltraTech Cement has completed the Rs 16,189 crore acquisitions of Jaiprakash Associates’ six integrated cement plants and five grinding units. These supposedly have a capacity of 21.2 million tonnes, combined. After this, UltraTech is not looking at making major takeovers in the near future. This acquisition makes UltraTech the fourth largest private cement company in the world and the biggest in India with capacity of 93 million tonnes per annum.

“The focus now will be on sweating these assets, consolidating and absorbing them. We will also be investing in these assets to upgrade them. We plan to invest around Rs500-700 crore in these assets over the next couple of years,” said Aditya Birla Group chairman, Kumar Mangalam Birla.

Also as a part of the deal, Rs 12,000 crore of loans on the books of Jaiprakash Associates Ltd will move to 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, Mr Birla added.