Displaying items by tag: Madhya Pradesh

India: UltraTech Cement has completed its US$2.5bn acquisition of six integrated cement plants and five grinding plants from Jaiprakash Associates. The transfer was made effective at a meeting of the Scheme Implementation Committee of the board of directors of UltraTech Cement. The purchase includes plants in Himachal Pradesh, Uttar Pradesh, Uttarakhand, Madhya Pradesh and Andhra Pradesh with a total production capacity of 21.2Mt/yr.

“This move is essentially for geographic market expansion, enabling UltraTech’s entry into the high growth markets of India where it needed greater reinforcement,” said Kumar Mangalam Birla, chairman of UltraTech. He added that the acquisition would add synergies in manufacturing, distribution and logistics.

Following the purchase UltraTech holds 18 integrated plants, one standalone clinker production plant, 25 grinding plants and seven bulk terminals, increasing its Ordinary Portland Cement capacity to 93Mt/yr. UltraTech said that the new production units will make it the fourth largest cement producer in the world outside of China and that it confirms its place as the largest producer in India.

India: Orient Cement has signed a deal with Jaiprakash Associates to buy three cement plants from it for US$302m. The arrangement, which was originally announced in October 2016, includes a deal to buy a 74% stake in Bhilai Jaypee Cement for US$225m and the acquisition of the Nigrie cement grinding plant in Singrauli, Madhya Pradesh from Jaiprakash Power Ventures for US$77m, according to the Hindu newspaper. 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 transaction will be funded by Orient Cement through a mix of internal accruals, debt and equity funding. The acquisitions will increase Orient Cement’s production capacity to 10.2Mt/yr from 8Mt/yr and it will grant it access to the central and eastern regions of the country.

India: Prism Cement has received a letter of intent from the state government of Madhya Pradesh to grant it a lease to mine cement grade limestone at Chulhi and Majhiyar, Satna district for 50 years. The lease covers reserves of about 23.6Mt and it applies to the cement producer’s plants in the state.

India: UltaTech Cement’s net profit has risen by 20% year-on-year to US$292m for the first nine months of its financial year to the 31 March 2017 from US$244m in the same period in the pervious year. Its total income from operations rose slightly to US$3.04bn. However, net sales fell slightly in the third quarter.

The cement producer reported that its board of directors had approved the setting up of a 3.5Mt/yr cement plant at Dhar, Madhya Pradesh for a cost of around US$382m. Commercial production at the plant is anticipated to start in early 2019. The plant is intended to grow the company’s markets in southwest Madhya Pradesh.

UltaTech Cement added that it had deposited a penalty of US$17.3m, 10% of a fine imposed by the Competition Commission of India (CCI) in August 2016. It is also facing a separate fine for U$10m from the CCI in relation to alleged misconduct in Haryana. The company intends to appeal both fines.

India: Dalmia Bharat's income has risen by 14% year-on-year to US$577m in the first half of its financial year, which ended on 30 September 2016, from US$505m in the same period of the previous financial year. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 28% to US$135m from US$105m. Its sales volumes rose by 21% to 7.18Mt from 5.95Mt. The cement producer explained that it had focused on building up existing capacity and entering new markets in Uttar Pradesh and Madhya Pradesh during the period.

India: The shareholders of Jaiprakash Associates approved the sale of the group’s cement business to UltraTech Cement. According to the deal, arranged earlier in 2016, UltraTech Cement will buy Jaiprakash Associates' cement plants in Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh, which have a total production capacity of 21.1Mt/yr, at an enterprise value of US$2.4bn. In addition, it will acquire a 4Mt/yr grinding plant being built in Uttar Pradesh.

Approval has been obtained from the Competition Commission of India, according to the Press Trust of India. The next step involves seeking approval from the concerned High Court and the final approval from capital markets regulator.

India: Jaypee Cement is seeking approval from the Ministry of Coal to return two captive coal blocks, which it previously won by auction in 2015. The company has told the ministry that it does not require the coal blocks as it has sold off the attached cement plants, a ministry official told the Economic Times newspaper. The official added that Jaypee Cement could be barred from bidding for other coal blocks for one year and that bank guarantees equivalent to a year’s revenue from the mines could be seized. The two blocks are Majra in Maharashtra and Mandla South in Madhya Pradesh.

Orient Cement agreed to purchase three cement plants from Jaiprakash Associates for US$292m in early October 2016.

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.

India: UltraTech Cement has signed a Memorandum of Understanding to buy Jaiprakash Associates’ cement plants, which have a total cement production capacity of 22.4Mt/yr. The deal includes both integrated cement plants and cement grinding plants. The plants are situated in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka.

The acquisition also includes a 4Mt/yr cement grinding plant being built in Uttar Pradesh. UltraTech will pay an additional US$68.7m for this plant once it is completed. The deal will increase UltraTech’s total cement production capacity to 90.7Mt/yr from 68.3Mt/yr. The transaction is subject to regulatory approval.

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.