Jaiprakash Associates sells Gujarat plant to Ultratech Cement Ltd

Jaiprakash Associates Ltd has finalised the deal with Ultratech Cement Ltd. The US$594 million sale of the Jaiprakash plant in Gujarat state, India, has been in the offing for a while, but was confirmed today in a statement from Ultratech Cement. The acquisition of the 4.8 million t cement plant pushes Ultratech’s capacity to 59 million t.

Jaiprakash Associates was forced to offload the cement plant in a bid to reduce its US$10 billion debt, accumulated as the company sought to expand its power, sports and construction businesses. Profit has been falling over the last two years, and with interest rates set to rise, something had to give. Several companies were reported to be interested in the Gujarat plant, the sale of which has been on the table for more than a year, but billionaire Kumar Mangalam Birla was said to be top of the list.

The transaction is expected to take between seven and nine months to complete.

Edited from various sources by Katherine Guenioui