Adani Group is in advanced talks to buy the cement business of Jaypee group, which is currently facing insolvency procedure following the plea by the State Bank of India against its flagship firm Jaiprakash Associates. The Adani Group had lately acquired Ambuja Cements and ACC for $6.5 billion. The acquisition is part of Adani’s plans to double the cement manufacturing capacity to 140 million tonnes in the next five years. Currently, Adani Group is India’s second-largest cement maker. Its annual production capacity is 67.5 million tonnes. Aditya Birla Group’s UltraTech is the country’s largest cement manufacturer. It has a production capacity of 119.95 MTPA. It plans to raise it to 159.25 MPTA.
In 2016, Jaypee group sold its cement business to UltraTech for Rs 15,900 crore. The group still had a few units. Recently the boards of Jaiprakash Associates and Jaiprakash Power Ventures approved divesting plants for its remaining cement business as well as some non-core assets to reduce debt.
If the deal happens, the Adani Group will receive about 10 million tonnes per annum of capacity from the Jaypee Group. The Jaypee Group is spread across Madhya Pradesh, Uttar Pradesh, Andhra Pradesh, and Karnataka.
