Shree Cement to acquire Jaiprakash grinding unit

Shree Cement has entered into an agreement to buy Jaiprakash Associates 1.5Mta cement grinding unit in the Panipat district of Haryana state in north India.

The proposed sale is subject to approval of the lenders of Jaypee Associates and other concerned authorities.

HM Bangur, managing director of Shree Cement, said he expects the due diligence process to be completed in two weeks.He told local media that a "shortage" of grinding units within the company' portfolio and projected domestic cement demand growth of eight per cent were the main drivers behind the decision to acquire the unit.

Within the past year Jaiprakash sold its majority stake in the Borkaro Cement joint venture to Dalmia Cement and offloaded its cement assets in Gujarat to UltraTech Cement as part of efforts to trim debt.