India: Orient Cement is to buy three cement plants from Jaiprakash Associates for US$292m. The cement producer will acquire a 74% stake in Bhilai Jaypee Cement for US$217m from Jaiprakash Associates and the Nigrie cement grinding plant from Jaiprakash Power Ventures for US$75m, according to the Press Trust of India.
Bhilai Jaypee Cement, a joint venture between Jaiprakash Associates and the Steel Authority of India Limited (SAIL), has a 2.2Mt/yr integrated Portland slag cement plant in Satna Madhya, Madhya Pradesh and a grinding plant in Bhilai, Chhattisgarh. The acquisition will also give Orient Cement access to limestone reserves and other raw materials including slag. The Nigrie cement grinding plant in Singrauli, Madhya Pradesh, has a capacity of 2Mt/yr.
"The current proposal to acquire BJCL from JAL is a significant step towards accomplishing our current mission of reaching a capacity of 15Mt/yr by 2020," said CK Birla Group chairman CK Birla, owner of Orient Cement. At present, the cement producer has 8Mt/yr from three plants in Telangana, Maharashtra and Karnataka.
