Aditya Birla Group to buy Gujarat cement for Rs 3,800 cr

Ultratech Cement, an Aditya Birla Group company, on Wednesday announced that it has struck a deal to acquire 51 percent stake in the Gujarat cement unit of Jaypee Cement Corporation Limited (JCCL), whose enterprise value is Rs 3,800 crore.

Briefing media here this evening, Aditya Birla Group Chairman Kumaramangalam Birla said the Board of Directors of UltraTech Cement at its meeting held this day approved the acquisition of the cement unit of JCCL, by way of a demerger, comprising of an integrated cement unit at Sewagram and Grinding Unit at Wanakbori at Gujarat.

“With this acquisition of 4.8 mtpa Ultratech’s current capacity increases to 59 mtpa. With projects underway, it will stand raised to 70 mtpa by 2015.”

“Despite the prevailing muted growth of the industry, we believe the long term fundamentals and growth prospects remain intact. We will add more capacities in coming years,” said Birla.

JCCL is a wholly-owned subsidiary of the listed entity Jaiprakash Associates Limited (JAL), whose enterprise value is Rs 3,800 crore besides the actual net working capital at closing.