UltraTech acquires Jaiprakash's Gujarat assets

Jaiprakash Associates Ltd has confirmed it will sell its cement assets in Gujarat to UltraTech Cement Ltd for around INR38bn (US$598m) including debt.

UltraTech, the country's largest cement maker by production capacity, will issue shares worth up to INR1.5bn to Jaiprakash and assume debts of about INR36.50bn, the companies said on Wednesday.

Jaiprakash Associates has been trying to sell the plant for more than a year and was in talks with several potential buyers, including CRH.

Production capacity at UltraTech will rise to 59Mta after the acquisition of the 4.8Mta Jaiprakash unit, said Kumar Mangalam Birla, the chairman of UltraTech. The acquired assets comprise an integrated cement unit at Sewagram and a grinding unit at Wanakbori.

OP Puranmalka, Whole-time Director of the UltraTech added: "Besides giving us a stronger production base in Gujarat to serve the local market, it will also bolster our coastal footprint enabling us to cater to other regions of India and exports."