Shree Cements has agreed to buy Jaiprakash Associates’ 1.5 million tpa grinding unit for Rs.360 crore. The deal is set to boost Shree Cements’ grinding capacity in anticipation of an increase in Indian cement demand. The plant is located in northern India in Panipat, Haryana. For Jaiprakash Associates, the deal falls in line with its debt reduction strategy. The transaction is subject to approval by authorities and by both companies’ boards.
Meanwhile, Shree Cement reported a slight decrease in net profit for the April to June quarter at Rs.2770.20 million from Rs.2843.10 million in the same quarter last year. Net profit for the year ending 30 June was also down at Rs.7872.40 million from Rs.10 039.70 million last year. Total income for the period increased from Rs.57 785.80 million to Rs.60 722.50 million. Net sales for the year increased to Rs.5876 crore from Rs.5567 crore.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/26082014/shree-cements-buys-jaiprakash-associates-grinding-plant-349/