Jaypee Group To Divest Cement Business

Jaypee Group In Talks With JSW Cement With New Offer

Around eight months ago, the Jaypee Group had initiated talks with JSW Cement, a private company of the diversified Sajjan Jindal lead JSW Group to sell its entire approx. 22 MPTA cement portfolio. At that time, sources say the offer was to sell a controlling 51 per cent stake in a joint venture that would keep majority control of its cement units with the Jaypee Group. The talks did not come to any tangible conclusion.

Now, informed sources say, Jaypee has gone back to JSW cement with a new proposal that calls for a complete sellout of its cement business. Though, some sources say that Jaypee is likely to exclude its first cement plant located in Rewa, Madhya Pradesh, from the proposed sale.

Inspite of divesting around 9 MPTA of cement capacity to other cement companies like UltraTech Cement (4.8 MPTA), Shree Cement (1.5 MPTA) and Dalmia Cement (2.1 MPTA), as well as its current efforts to divest an additional 4.9 MPTA in Madhya Pradesh to UltraTech, the Delhi-based Jaypee Group group is still among the top five cement players in the country.

The Jaypee Group's has cement units in Uttar Pradesh, Himachal Pradesh, Andhra Pradesh, Chhattisgarh and Karnataka. The group's flagship company,Jaiprakash Associates (JPA), has approximately 14.2 MPTA, under its wing. The rest, including the 5 MPTA Balaji Cement, are under subsidiaries, joint ventures or group entities.

More on Cement Business Aquisition here...