UltraTech Cement, country’s largest cement maker is in talks for acquiring Jaypee’s cement assets in Solan, Himachal Pradesh for a sum of about Rs 4000 crore. Earlier, two European companies were reportedly in the race to buy the Solan assets, which includes a grinding and blending unit and a cement plant, but the talks failed to materialize.
However, this is not the first time that Ultratech Cement would be dealing with Jaypee. Earlier, in September 2013, UltraTech Cement had acquired Gujarat cement-making unit of Jaypee Cement, a subsidiary of debt-laden Jaiprakash Associates, for Rs 3,800 crore in stock and assumed debt.
Jaypee has been monetizing its asset to deleverage its balance sheet, which is burdened by a debt of Rs 53000 crore as on the last fiscal end. Meanwhile, the talks with Jaypee if fructify this time around too would add to Ultratech’s capacity as the company has been adding to its capacity through the inorganic route. UltraTech’s cement manufacturing capacity increased to 59 mtpa, from 54 mtpa earlier, after it bought Jaypee’s Gujarat plant and it aims to increase its capacity to 70 mtpa by 2015.