Displaying items by tag: Jaiprakash Associates

India: The Competition Commission of India (CCI) has cleared Ultratech Cement's proposed US$853m deal to buy two cement plants from Jaiprakash Associates in Madhya Pradesh. The acquisition is for a 2.6Mt/yr cement plant in Bela, with a 25MW captive power plant, and a 2.3Mt/yr cement plant in Sidhi with a 155MW captive power plant, according to the Economic Times.

"Looking at the details of the matter, the combination would not have any adverse impact on the market," the CCI order said.

UltraTech's cement production capacity will rise to 65Mt/yr. The company has set a target to reach 71Mt/yr by 2016. Following the sale Jaiprakash Associates, also know as Jaypee Group, will remain the country's third largest cement producer with a production capacity of 22Mt/yr.

India: Jaiprakash Associates is planning an integrated cement plant project in Dalla, Sonbhadra, Uttar Pradesh. The project includes a 2.20Mt/yr clinker plant and a 1.50Mt/yr grinding plant. The site currently has a 2Mt/yr clinker plant, a 500,000t/yr grinding plant, a 27MW power plant and six captive limestone mines. The project is waiting for environmental clearance.

India: Following the start of India's coal mine auction on 14 February 2015, in which Reliance Cement won the Sial Ghoghri mine in Madhya Pradesh for US$22.5/t, more mines have now been sold.

On the second day of the auction, 15 February 2015, Reliance Cement lost out on a mine in Maharashtra to Sunflag Iron and Steel, which bid US$28.7/t. Similarly, Aditya Birla Group's Hindalco Industries, which bid US$45.9/t for the Kathautia mine in Jharkhand, beat UltraTech Cement. The mine has 26Mt of coal reserves.

On the third day of the auction, 16 February 2015, Jaiprakash Associates won the Mandla North mine, which has 143Mt of extractable coal reserves, for US$40.3/t. UltraTech Cement and Hindalco Ltd had also placed bids for the mine. B S Ispat won the Marki Mangli III mine in Maharashtra for US$14.7/t, beating several rivals, including JSW Cement. The mine has 4.2Mt of extractable reserves.

India: Jaiprakash Associates (Jaypee Group) has announced that it will sell two cement plants in Madhya Pradesh State to UltraTech Cement. The assets comprise cement plants and grinding facilities in Bela and Sidhi with a total capacity of 4.9Mt/yr, along with an associated 180MW power plant to supply them.

UltraTech will pay US$740m in non-convertible debentures (loan certificates) and shares worth US$16m for the facilities. It will also assume a net debt and negative working capital of US$128m associated with the businesses. This puts the overall value of the transaction at US$628m.

The sale is part of Jaypee's programme to pay-down debt. It has sold assets worth US$3.6bn in pursuit of this aim. This includes some US$1.6bn of assets in its cement business. However, it said that it remains India's third-largest cement producer, with a capacity of 22Mt/yr.

Jaypee's largest previous cement divestment was also to UltraTech. In 2014, it sold a 2.4Mt/yr cement plant in Kutch and a 2.4Mt/yr grinding plant in Wanakbori, both in Gujarat State, for US$620m. The deal was closed in June 2014. In September 2014, Jaypee announced the US$60m sale of its 1.5Mt/yr grinding plant in Panipat to Shree Cement. It also sold its 74% stake in Bokaro Jaypee Cement Limited, a cement joint venture with the Steel Authority of India (SAIL) to Dalmia Cement for US$115m.

India: Dalmia Bharat has acquired the final 26% stake that it did not already own in Bokaro Jaypee Cement from the Steel Authority of India (SAIL), for US$150m. Bokaro Jaypee Cement has become a wholly-owned subsidiary of Dalmia. In March 2014 Dalmia acquired Jaypee's 74% holding in the company.

Bokaro Jaypee Cement was formed as a 74:26 joint venture project between Jaiprakash Associates and SAIL, for the operation of a 2.1Mt/yr capacity grinding plant at Bokaro, Jharkhand. The cement produced in the unit was sold through Jaiprakash's distribution network under the brand name 'Jaypee Cement'. However, Jaypee exited the venture and used the proceeds to address its debt.

India: Jaiprakash Associates Limited is selling its 2.1Mt/yr capacity split grinding plant at Bhilai, Chattisgarh to Shree Cements Limited for an enterprise value of US$293.
The deal is expected to be completed in October 2014.

Bhilai Jaypee Cement Limited is a joint venture between Jaiprakash Associates, which holds 74% stake in the unit and the Steel Authority of India Ltd (SAIL), which holds 26%. The cement plant, which has revenues of US$130m/yr, has US$97.5m of debt. After adjusting for this, the equity value of the deal is US$179 – 195m.

India: Shree Cement has received the approval to acquire a 1.5Mt/yr cement grinding unit in Panipat, Haryana, which is currently owned by Jaiprakash Associates. The unit will reportedly be sold for US$59.6m.

The deal is subject to adjustments for any financial indebtedness and net working capital taken over as of the closing date and subject to satisfactory completion of due diligence and obtaining necessary approvals and consents.

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.

India: Jaiprakash Associates' profit after tax fell by 18.7% year-on-year to US$17.1m in the quarter that ended in March 2014 on account of higher interest costs and lower revenues.

Net sales declined by 11.9% to US$578m during the January - March 2014 quarter, down from US$657m in the same quarter of 2013. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 2.3% year-on-year to US$148m. Interest costs for the quarter jumped by 38% year-on-year to US$128m, while cost overheads such as direct construction costs fell by 25% and other expenditures fell by 11%. Revenue from its cement division, which contributes 45% to the company's total revenue, increased by 0.5% year-on-year to US$280m. However, earnings before interest and cost margin plunged by 700 basis points to 6.7%.

India: Jaiprakash Associates plans to sell US$1.66bn worth of assets by 2015 to cut its debt, after divesting assets totalling US$2.46bn in the six months that ended on 31 March 2014.

Jaiprakash Associates plans to sell a thermal power plant, a cement plant, some of its real estate assets and a part of its stake in the Yamuna Expressway. It plans to exit its cement joint venture with Steel Authority of India Ltd in Bhilai, Chhattisgarh and is in talks with Aditya Birla Group's Ultratech Cement Ltd. Jaiprakash Associates holds a 74% stake in the 2.2Mt/yr capacity cement plant.

A Jaiprakash Associates executive said that the current financial year will see more asset sales, which will ease pressure from banks to repay borrowings. Since September 2013, Jaiprakash Associates has sold assets valued at US$2.46bn, meeting its debt-reduction target for the fiscal year that ended on 31 March 31 2014.