Consolidation is accelerating in the cement sector – The New Indian Express

By Express press service

NEW DELHI: Since the entry of billionaire Gautam Adani in promoting the Adani Group in the cement sector, there seems to be an increase in the number of larger players who are planning to acquire smaller players or their manufacturing units to increase their production capacity.

India Cements announced on Monday that it has signed an agreement with JSW Cement to sell its entire stake in Spring Way Mining Pvt Ltd (SMPL) for nearly Rs 477 crore. Apart from JSW, two of the country’s leading cement producers, Adani Cement and Ultratech Cement, have also been reported in the race to acquire SMPL units located in Madhya Pradesh.

JSW Cement has so far paid Rs 373.87 crore under the deal and the remaining Rs 103 crore will be paid no later than December 31, 2022. According to Chennai-based Indian Cements, SMPL has a net worth of Rs 14.22 crore and the company achieved zero revenue in the 2021-22 financial year.

SMPL however owns limestone land, a key raw material for cement, in Panna district of Madhya Pradesh and is in the process of setting up a cement plant in Damoh district of the state.

This sale by India Cements aims to reduce its debt which stood at more than Rs 3,000 in March 2022. Adani Group, which aims to become the country’s leading cement player by 2030, is in talks to buy debt cement activities. -laden Jaypee Group for around Rs 5,000 crore.

Sources said Adani Group is in advanced talks with Jaiprakash Associates management and the deal could be announced shortly. The Adanis had recently made a foray into the cement sector with the acquisition, set at $10 billion, of Ambuja Cements and ACC to become the country’s second largest cement company with an annual production capacity of $67.5 million. tons. The Jaypee group had sold its cement business to UltraTech.

Cement companies in a flurry of acquisitions

India Cements announced on Monday that it has signed an agreement with JSW Cement to sell its entire stake in Spring Way Mining for nearly Rs 477 crore. Apart from JSW, two of the country’s leading cement producers, Adani Cement and Ultratech Cement, have also been reported in the race to acquire SMPL units located in Madhya Pradesh.

NEW DELHI: Since the entry of billionaire Gautam Adani in promoting the Adani Group in the cement sector, there seems to be an increase in the number of larger players who are planning to acquire smaller players or their manufacturing units to increase their production capacity. India Cements announced on Monday that it has signed an agreement with JSW Cement to sell its entire stake in Spring Way Mining Pvt Ltd (SMPL) for nearly Rs 477 crore. Apart from JSW, two of the country’s leading cement producers, Adani Cement and Ultratech Cement, have also been reported in the race to acquire SMPL units located in Madhya Pradesh. JSW Cement has so far paid Rs 373.87 crore under the deal and the remaining Rs 103 crore will be paid no later than December 31, 2022. According to Chennai-based Indian Cements, SMPL has a net worth of Rs 14.22 crore and the company achieved zero revenue in the 2021-22 financial year. SMPL however owns limestone land, a key raw material for cement, in Panna district of Madhya Pradesh and is in the process of setting up a cement plant in Damoh district of the state. This sale by India Cements aims to reduce its debt which stood at more than Rs 3,000 in March 2022. Adani Group, which aims to become the country’s leading cement player by 2030, is in talks to buy debt cement activities. -laden Jaypee Group for around Rs 5,000 crore. Sources said Adani Group is in advanced talks with Jaiprakash Associates management and the deal could be announced shortly. The Adanis had recently made a foray into the cement sector with the acquisition, set at $10 billion, of Ambuja Cements and ACC to become the country’s second largest cement company with an annual production capacity of $67.5 million. tons. The Jaypee group had sold its cement business to UltraTech. Cement companies on acquisition spree India Cements announced on Monday that it has signed an agreement with JSW Cement to divest its entire stake in Spring Way Mining for nearly Rs 477 crore. Apart from JSW, two of the country’s leading cement producers, Adani Cement and Ultratech Cement, have also been reported in the race to acquire SMPL units located in Madhya Pradesh.

Comments are closed.