Dalmia Bharat Ltd. has signed a Business Transfer Agreement with Jaiprakash Associates Limited and Adani Infra (India) Limited to acquire cement assets for an enterprise value of ₹2,850 crore, as reported by sources. This deal comes four years after the company had entered into a framework and business transfer agreement with Jaiprakash Associates, back in December 2022. However, before the deal could be consummated, Jaiprakash Associates was admitted to insolvency proceedings. The proposed transaction would give Dalmia Bharat control of JAL's 5.2 million tonnes per annum (MTPA) cement capacity and 3.3 MTPA clinker capacity, along with railway sidings at Rewa and Chunar. According to ETInfra, the Adani Group recently completed the acquisition of Jaiprakash Associates under the Insolvency and Bankruptcy Code (IBC), marking one of India's largest multi-asset infrastructure resolutions spanning power, EPC, logistics-linked land, real estate, hospitality and ancillary businesses.
As per the agreement, Dalmia Bharat will be acquiring plants located at Rewa in Madhya Pradesh, along with those in Churk, Chunar and Sadwa in Uttar Pradesh. The acquisition includes 5.2 MTPA cement capacity, 3.3 MTPA clinker capacity and 99 MW of thermal power capacity, along with railway sidings at Rewa and Chunar. According to sources, this acquisition helps Dalmia Bharat gain access to markets in Central India and supports the company's goal of becoming a Pan-India player. The plants are strategically located across key cement manufacturing regions in Central India, providing Dalmia Bharat with enhanced operational capabilities and market presence.
Dalmia Bharat has now signed an agreement with JAL and the Adani Group to settle all disputes, pending legal proceedings, arbitral awards and prior framework arrangements related to the cement business, as reported by sources. This settlement resolves past legal hurdles that had prevented the original deal from completion. Dalmia's earlier attempt to acquire the cement assets for ₹5,666 crore had faced legal hurdles linked to a shareholder dispute, but the current agreement addresses these previous obstacles. ETInfra reports that JAL was admitted into the corporate insolvency resolution process (CIRP) by the National Company Law Tribunal's Allahabad bench on June 3, 2024, following a petition by ICICI Bank, which had complicated the original acquisition plans. A formal announcement is expected soon, with Dalmia Bharat not immediately responding to requests for comments.
Dalmia Bharat has outlined ambitious expansion plans, targeting capacity of 66.7 MTPA by the second or third quarter of financial year 2028, and end that financial year with a capacity of 75 MT. With this acquisition, the overall capacity of Dalmia Bharat will move to 54.7 MTPA from the current capacity of 49.5 MTPA. Puneet Dalmia, MD & CEO of Dalmia Bharat, stated that the deal serves as a "great strategic fit" for the company. The acquisition significantly strengthens Dalmia Bharat's position in the competitive cement market and supports its long-term growth objectives. The company aims to capitalize on relatively better pricing in newer Central markets and its cost leadership to enhance stakeholder value and operational scale.
The Adani Group's acquisition of Jaiprakash Associates under the Insolvency and Bankruptcy Code (IBC) marks one of India's largest multi-asset infrastructure resolutions spanning power, EPC, logistics-linked land, real estate, hospitality and ancillary businesses. Separately, Adani Ports and Special Economic Zone Ltd has acquired a 100 per cent stake in JFIL, the holding company of Kanpur Fertilizers and Chemicals Ltd, while Adani Power Ltd has acquired JAL's power assets. Adani Power Ltd has entered into a share purchase agreement to acquire JAL's 24 per cent stake in Jaiprakash Power Ventures Ltd (JPVL) for ₹2,994 crore, which owns and operates three power plants with a combined capacity of 2,220 MW. These moves signal significant consolidation in India's infrastructure sector and demonstrate the comprehensive restructuring of the Jaiprakash Associates portfolio.
