CK Birla Group’s Orient Cement is to acquire cement business units from Jaypee Group and is seeks to expand its business in India. According to a filing on the Bombay Stock Exchange (BSE), Orient Cement will take a 74% stake in Bhilai Jaypee Cement Ltd (BJCL), as well as buying a complete cement-grinding unit in Nigrie, Madhya Pradesh.
BJCL has a cement production capacity of 2.2 million tpy and a clinker production capacity of 1.1 million t, according to the BSE filing. Orient Cement will pay INR 14.5 billion (US$224.8 million) in cash for the majority stake.
The Nigrie grinding plant has a total production capacity of 2 million tpy. The unit began operations in June 2015 and will be acquired by Orient Cement for a total consideration of INR 4.96 billion (US$76.9 million). The plant is currently part of Jaiprakash Power Ventures.
Read the article online at: https://www.worldcement.com/indian-subcontinent/01062017/orient-cement-to-acquire-two-cement-businesses/