JOIN US In perhaps the biggest asset resolution in the country, a consortium of lenders, led by ICICI Bank, concluded the sale of Jaypee Cement to Ultratech Cement.
The transaction, valued at Rs 16,189 crore ($2.5 billion), is the largest deal to be concluded so far, involving a major financial restructuring programme, conducted by the ICICI-led consortium of lenders to Jaiprakash Associates. Alongside, SBI and Axis Bank actively supported this programme.
UltraTech now becomes the fourth largest cement player globally (excluding the Chinese players) and the largest player in India by an even larger margin. The company now has 18 integrated plants, 1 clinkerisation unit, 25 grinding units and 7 bulk terminals, augmenting its grey cement manufacturing capacity to 93 mtpa.
“This is the largest asset resolution in the country, and I hope that this landmark transaction will pave the way for more such resolutions,” ICICI Bank managing director and CEO Chanda Kochhar said.
ICICI Bank has played a significant role through this entire process, enabling successful completion of this transaction, Kochhar added.
“This move is essentially for geographic market expansion, enabling UltraTech’s entry into the high growth markets of India where it needed greater reinforcement. The operations will be strengthened by the process and technological upgradation and also by enhancement in capacity utilisation,” Ultratech Chairman Kumar Mangalam Birla said.