Thursday, December 4, 2014

#Dalmia Cement completes acquisition of Bokaro Jaypee Cement plant

Dalmia Cement Bharat Limited (DCBL) today announced the complete acquisition  of its Bokaro cement plant by purchasing 100% of Bokaro Jaypee Cement Limited (BoJCL) for a total enterprise value of Rs.1,150 crore (BoJCL was a 74:26 JV of JAL & SAIL).

Dalmia Cement paid Rs.234.56 crore to Steel Authority of India Ltd (SAIL) for its 26% stake.In March this year, Dalmia Bharat Group had purchased 74 per cent stake from Jaypee Group in this joint venture.

With manufacturing capacity of 2.1 million tonnes per annum (MTPA), the plant will cater to Jharkhand, Bengal and Bihar. With this plant, DCBL’s installed cement capacity (including subsidiaries and associates) will reach 24 MTPA by the end of FY15.

Mahendra Singhi, Group CEO, said  that the enterprise valuation for the Bokaro entity was placed at Rs. 1,150 crore.

The Bokaro cement plant will be benchmarked to global thresholds of manufacturing excellence in producing Portland Slag Cement (PSC) under Dalmia Cement brand name.

Amandeep, Business Head and Director, BoJCL added, “Eastern India is a highly promising market with sufficient cement demand. With our state-of-the-art plant at Bokaro, we will ensure seamless cement delivery across Jharkhand, Bengal and Bihar.”