Shree Cement Ltd signed a Business Transfer Agreement (BTA) with Jaiprakash Associates Ltd on 19 September 2014, following an earlier announcement that the company had agreed to acquire Jaiprakash Associates’ 1.5 million tpa cement grinding plant in Panipat, located in the state of Haryana in northern India. As part of the transaction, the manufacturer must obtain all the necessary approvals and consents.
The acquisition, which will increase the company’s grinding total capacity, is set to stand Shree Cement in good stead to meet growing cement demand throughout the country. For Jaiprakash Associates, the transaction forms part of its debt reduction strategy.
India’s Shree Cement is planning to set up a 3 million tpa grinding plant in Odapada, located in the Dhenkanal district, at a cost of approximately Rs.452.55 crore.