India: UltraTech Cement Ltd is in talks to buy cement assets from Jaiprakash Associates Ltd. The two companies are in discussions about projects, including Jaiprakash's Rewa cement plant in central India, which has a 7Mt/yr cement production capacity.
Selling additional assets would help Jaiprakash to reduce its debt, which jumped more than four-fold in the five years through March 2014 to US$10.3bn. In 2013 UltraTech agreed to buy a Jaiprakash cement unit based in Gujarat State.
Jaiprakash is also looking for buyers for cement assets in Himachal Pradesh State, where it owns two plants with a combined production capacity of 3.5Mt/yr. Jaiprakash sold its 74% stake in Bokaro Jaypee Cement Ltd, a joint venture with the Steel Authority of India Ltd, to Dalmia Bharat Ltd for US$194m in March 2014.
After its recent divestments, Jaiprakash has a cement production capacity of 26.4Mt/yr, according to a company presentation in May 2014. The company plans to sell assets valued at about US$1.35bn by March 2015.
