Jaiprakash Associates today announced sale of its two cement units to UltraTech Cement for Rs 5,400 crore. With this, the group has disinvested assets of over Rs 20,000 crore. The sale of two units in Madhya Pradesh is its second deal with the Aditya Birla group-promoted company.
In September 2013, Jaiprakash signed an agreement to sell its Gujarat cement plants to Ultratech Cement Limited, for an enterprise value of Rs 3,800 crore. The transaction completed earlier comprised an integrated unit at Sewagram and a grinding unit at Wanakbori with a combined capacity of 4.8 million tonnes per annum.
UltraTech is into manufacturing grey cement, ready mix concrete and white cement in the country and has an installed capacity of 62 million tonnes per annum for grey cement. It has 12 integrated plants, 16 grinding units and six bulk terminals.
The board of directors of Jaiprakash in a meeting today approved the memorandum of understanding for the latest deal with UltraTech. The two units in Madhya Pradesh include clinker capacity of 2.1 million tonne and cement grinding capacity of 2.6 MT at Bela along with a captive power plant of 25 Mw. Besides, another 3.1 MT of clinker capacity and 2.3 MT of cement grinding capacity at Sidhi will also be sold along with a 155 Mw captive power plant.