Dalmia Bharat Limited has announced a definitive agreement to acquire cement and clinker assets from Jaiprakash Associates Limited for an enterprise value of Rs 2,850 crore. This acquisition adds 5.2 MnTPA of cement capacity in the Central region, including plants in Madhya Pradesh and Uttar Pradesh. The move marks a significant milestone in the company’s vision to become a pan-India player, with operations at these facilities expected to commence in Q2 FY27.
Acquisition Overview
Through its wholly owned subsidiary, Dalmia Cement (Bharat) Limited, the company has executed a Business Transfer Agreement to acquire a substantial cement undertaking. The deal encompasses plants located at Rewa (Madhya Pradesh), as well as Churk, Chunar, and Sadwa (Uttar Pradesh). This strategic purchase includes a total cement capacity of 5.2 MnTPA, clinker capacity of 3.3 MnTPA, and 99 MW of thermal power capacity, all at an enterprise value of Rs 2,850 crore.
Strategic Rationale and Growth
This expansion provides Dalmia Bharat with immediate, high-quality access to the Central Indian market, offering a faster route to growth compared to greenfield projects. By leveraging the company’s proven cost leadership and deep familiarity with these assets—stemming from an earlier tolling arrangement—management expects to rapidly ramp up production and improve EBITDA margins. The acquisition is a pivotal step toward the company’s broader objective of achieving a total capacity of 66.7 MnTPA by Q2-Q3 FY28.
Operational Roadmap
The transaction is expected to conclude within two weeks. Following the acquisition, the company has planned a phased investment to optimize operations: Rs 300 crore will be directed toward refurbishment within the first year, and an additional Rs 250 crore is earmarked for efficiency-related capital expenditure, including waste heat recovery systems, over the next two years. With strong demand potential in the region, these assets are set to play a crucial role in diversifying the company’s regional footprint and mitigating volatility.
Source: BSE
