Dalmia Bharat Nears Deal for JAL Cement Assets Following Adani Insolvency Takeover: Sources

Dalmia Bharat to Acquire Jaiprakash Associates' Cement Assets for Over Rs 2,500 Crore

Dalmia Bharat Ltd has agreed to acquire the cement assets of Jaiprakash Associates Ltd (JAL) for more than Rs 2,500 crore, marking a significant development in the Adani Group's efforts to restructure and integrate key businesses of the infrastructure conglomerate following its acquisition under the insolvency process.

The proposed transaction would give Dalmia Bharat control of JAL's 5.2 million tonnes per annum (MTPA) cement capacity and 3.3 MTPA clinker capacity. This acquisition is part of the Adani Group's broader strategy to carve up and integrate key businesses of JAL, which was acquired under the Insolvency and Bankruptcy Code (IBC).

Dalmia Bharat had previously entered into an agreement with JAL for the cement assets, but the transaction had run into legal disputes and shareholder challenges. The company has now signed an agreement with JAL and the Adani Group to settle all disputes, pending legal proceedings, arbitral awards, and prior framework arrangements related to the cement business.

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Timeline of Key Events

Separately, Adani Ports and Special Economic Zone Ltd (APSEZ) has acquired a 100 per cent stake in JFIL, the holding company of Kanpur Fertilizers and Chemicals Ltd (KFCL), for an undisclosed amount. KFCL owns around 243 acres of land in Kanpur, which APSEZ said is strategically suited for developing a logistics park and warehousing facilities to strengthen its inland logistics operations in North India.

Adani Power Ltd (APL) has also acquired JAL's power assets, further expanding its generation portfolio of 18,150 MW. APL has entered into a share purchase agreement to acquire JAL's 24 per cent stake in Jaiprakash Power Ventures Ltd (JPVL) for Rs 2,994 crore, and has signed a business transfer agreement for the acquisition of JAL’s 180 MW thermal power plant at Churk, along with related assets.

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The Adani Group's acquisition of JAL's cement, power, and other assets is part of its broader strategy to expand its presence in the infrastructure sector and create a diversified portfolio of businesses.