Jaiprakash to hive off cement company, India

Jaiprakash Associates will hive off its cement plants and other units of the company to wholly-owned subsidiary, Jaypee Cement Corporation, the Economic Times of India reports.

"We are pleased to inform that the equity shareholders and creditors of the company, in their respective meetings held on February 25, have duly approved the scheme of arrangement," Jaiprakash Associates said in a statement to the Bombay Stock Exchange (BSE).

Cement is one of the major businesses of Jaiprakash Associates, the flagship company of the Jaypee group. Besides expanding capacity in North, East and Central India, it is in the process of setting up  units in Gujarat and Karnataka.

The Jaypee Group has an installed cement capacity of 26.20Mt and is expanding to 35.9Mt.