Adani in talks to buy debt-ridden Jaiprakash cement unit for $606 mn, says report

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New Delhi: Indian billionaire Gautam Adani’s Adani group is in advanced talks with debt-ridden Jaiprakash Power Ventures Ltd to buy its cement unit, according to people familiar with the development.

One source said the ports-to-power conglomerate could spend roughly 5,000 billion rupees ($606 million) to buy a cement grinding plant and other less valuable assets. The source requested anonymity because the information is confidential.

It will be bought by one of the cement factories recently bought by Asia’s richest man, according to the sources, who also said the announcement is expected as early as this week. Although the talks are far along, sources say they could still be delayed or fall through. The deal was previously reported by Indian news agency ET NOW without a price tag.

The deal will support the Adani group’s efforts to maintain its sudden dominance in the cement industry, which began after it bought Ambuja Cements Ltd. and ACC Ltd. from Switzerland’s Holcim Ltd. in May, giving it almost It has transformed into the second largest cement producer in India. immediately with an installed production capacity of 67.5 million tons per year.

Representatives of the Adani Group declined to comment. Representatives from Jaiprakash Associates were not immediately available for comment.

The factory can grind 2 million tons of cement per year. It started operations in October 2014 in the city of Nigrie in the central Indian state of Madhya Pradesh.

In order to reduce debt, the board of Jaiprakash Associates has agreed to sell the company’s “core” cement operations, according to a stock exchange filing on Monday. Separately, Jaiprakash Power Ventures said its board would consider selling its Nigrie cement grinding facility and other non-core assets, without naming potential buyers.

Last month, Adani Group announced plans to invest 200 billion rupees in its recently acquired cement business and increase its capacity to produce 140 million tonnes of cement over five years.



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