Dalmia Cement (Bharat) Ltd on Friday said it has signed a deal to acquire key cement assets of Jaiprakash Associates Ltd (JAL) from the Adani Group-led insolvency resolution process for an enterprise value of Rs 2,850 crore, in a move that will deepen its footprint in central India and accelerate its capacity expansion plans.
The transaction, executed through a Business Transfer Agreement with JAL and Adani Infra (India) Ltd on May 21, covers cement plants at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh. The assets together have 5.2 million tonnes per annum (MnTPA) cement capacity and 3.3 MnTPA clinker capacity.
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The acquisition also includes 99 MW of thermal power capacity as well as railway sidings at Rewa and Chunar, along with a common railway siding at Churk, giving Dalmia logistical and energy-linked advantages for operations.
The deal comes after the Adani Group acquired Jaiprakash Associates under the Insolvency and Bankruptcy Code (IBC), reviving a long-pending transaction between Dalmia and the debt-laden infrastructure conglomerate that had stalled after JAL entered insolvency proceedings.
Dalmia Bharat said the transaction is expected to close within two weeks.
With the acquisition, Dalmia Bharat’s total cement capacity will rise to 54.7 MnTPA. The company added that ongoing expansion projects at Belgaum, Pune and Kadapa are expected to further increase overall capacity to 66.7 MnTPA by the second or third quarter of FY28.
The company said the acquisition would provide faster market access in central India compared with setting up a greenfield project, while also offering future expansion opportunities through debottlenecking and brownfield additions.
Dalmia Bharat also expects the assets to improve earnings through access to newer markets, stronger pricing environments and operational efficiencies stemming from its cost leadership strategy.
The deal effectively revives an earlier framework agreement signed between Dalmia and JAL in December 2022 for the sale of the cement business assets. That agreement, along with related business transfer and cement sale purchase agreements, had also aimed to resolve disputes between the two companies linked to a long-term clinker supply agreement.
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However, the transaction remained incomplete after Jaiprakash Associates was admitted into insolvency proceedings.
Following approval of the Adani Group’s resolution plan for JAL under the IBC framework, Dalmia sought recognition of the earlier arrangement to settle pending legal disputes, arbitral proceedings and commercial disagreements tied to the assets.
The company said the fresh agreement with JAL and Adani Infra was executed to preserve the cement undertakings, restart economic activity and bring closure to all pending disputes in line with the spirit of the insolvency resolution process.
The acquisition marks one of Dalmia Bharat’s significant inorganic expansion moves as competition intensifies among large cement makers for strategic regional assets amid rising infrastructure and housing demand in India.
