India: Birla Group front runner to buy Bhillai stake

Orient Cement, part of the Birla Group, has emerged as the front-runner to buy out Jaiprakash Associates’ 74 per cent stake in Bhillai Jaypee Cement, the Economic Times reports.

Bhillai is run as a joint venture between Jaiprakash and SAIL, with the latter holding 26 per cent of the enterprise. A source told the Economic Times that the deal values Bhillai at INR15bn (US$225m).

Bhillai Jaypee Cement has a capacity of 2.1Mta with a clinker unit at Satna and a grinding unit Bhillai.

"This deal is part of the ongoing debt-reduction drive of Jaiprakash Associates. When it comes to Orient Cement, it will get access to markets in Central and East India. They are currently mainly present in South India and want to ramp up their capacity," a source told the newspaper.