Gautam Adani, the world’s fourth richest person and Asia’s richest man, is continuously expanding his business. After taking a strong entry in the cement sector, now Adani is preparing to increase its dominance in this sector. Under this, he is going to add another cement company to his portfolio, about which the round of talks is going on.
Talks on deal with Jaypee Group
Gautam Adani is focusing his entire attention on the cement sector. After making Ambuja Cements and ACC Cements his own, now his eyes are on JP Cement, another big company in this sector. According to Bloomberg, the Adani Group is in talks to buy the cement business of the debt-hit Jaiprakash Power Ventures Ltd. This information has come out quoting sources related to this matter.
Deal possible for $606 million
The report said that the Adani Group is preparing to do this deal for $ 606 million (over Rs 4,992 crore). Under this, talks are being held to buy a cement grinding unit and other small assets. It says that Asia’s richest person will make this acquisition through one of the recently acquired cement units. No official announcement has been made about this deal yet, but it is expected that it can be signed soon.
Preparing to sell to reduce debt
According to the stock exchange filing on Monday, the board of Jaiprakash Associates Limited has made up its mind to sell its cement business to reduce the company’s debt. In this, Jaiprakash Power Ventures was quoted as saying that the board is preparing to sell Nigri Cement Grinding Unit and other non-core assets.
Country’s second largest cement company
In May this year, the Adani Group won the race to buy Swiss firm Holcim’s India business for $10.5 billion (Rs 81,361 crore). Holcim held 63.19 per cent in Ambuja Cements and 4.48 per cent in ACC. After the completion of this deal, Adani acquired 63.15 per cent stake in Ambuja Cements and 56.69 per cent stake in ACC (50.05 per cent stake through Ambuja Cements).
Ambuja Cement and ACC Limited have a combined capacity of 66 million tonnes per annum. After this deal, Adani became the second largest player in the cement sector in India in a jiffy. Ambuja Cement has 6 cement plants in the country, while there are 8 cement grinding units. Ambuja Cement alone has an annual production capacity of 31 million tonnes.