Dalmia Cement To Acquire Jaiprakash Associates Cement Assets For ₹2,850 Crore

Dalmia Cement (Bharat) Ltd has signed a Business Transfer Agreement with Jaiprakash Associates Ltd and Adani Infra (India) Ltd to acquire cement assets in Madhya Pradesh and Uttar Pradesh for an enterprise value of ₹2,850 crore. The transaction is expected to strengthen Dalmia Bharat’s presence in central India and provide faster access to important cement markets.

The acquisition covers cement plants at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh. These assets together have 5.2 million tonnes per annum cement capacity and 3.3 million tonnes per annum clinker capacity. The deal also includes 99 MW thermal power capacity, railway sidings at Rewa and Chunar, and a common railway siding at Churk. The transaction is expected to close within two weeks.

Following the acquisition, Dalmia Bharat’s total cement capacity will increase from 49.5 MnTPA to 54.7 MnTPA. The company is also progressing with expansion projects at Belgaum, Pune and Kadapa, which are expected to take its capacity to 66.7 MnTPA by the second and third quarters of FY28.

The deal gives Dalmia Cement a strategic advantage by adding ready cement capacity, clinker assets, power infrastructure and logistics support. Compared with a greenfield project, the acquisition offers quicker market entry and better scope for debottlenecking and brownfield expansion.

Dalmia Cement had earlier entered into a framework agreement with Jaiprakash Associates in December 2022 for the sale of business assets and settlement of disputes linked to a long-term clinker supply agreement. However, the process was delayed after Jaiprakash Associates entered insolvency proceedings.

After Adani Group’s resolution plan for Jaiprakash Associates was approved under the insolvency framework, Dalmia Cement moved ahead with a fresh agreement involving Jaiprakash Associates and Adani Infra (India) Ltd. The arrangement also addresses pending legal proceedings and earlier contractual issues.

Puneet Dalmia, Managing Director and CEO of Dalmia Bharat Ltd, said the acquisition is a strategic fit and will help the company strengthen its central India position while creating long-term value.