Adani Group in talks to buy Jaiprakash’s cement unit for Rs 5,000 crore

The debt-ridden cement division of Jaiprakash Associates Ltd. could be acquired by Adani Group for $606 million. An announcement regarding the acquisition should be made as soon as this week by one of the cement businesses that Adani Group just acquired.

Adani Group, owned by billionaire Gautam Adani, is in advanced talks to pay $606 million for the debt-ridden Jaiprakash Associates Ltd. cement sector. According to the sources aware with the matter, the ports-to-power conglomerate may offer roughly 50 billion rupees ($606 million) for a cement grinding plant and other less valuable assets.

Separately, Jaiprakash Associates announced that its board of directors had approved the sale of the business that makes cement, although it did not specify the potential purchaser or the asking price. Bloomberg reports that the acquisition will be made by one of the Adani Group’s recently acquired cement units, with an announcement anticipated as soon as this week. However, the negotiations may still be postponed or fail.

The deal will support the Adani Group’s rapid ascent to dominance in the cement industry, which started in May when it acquired Ambuja Cements Ltd. and ACC Ltd. from Holcim Ltd. of Switzerland, essentially overnight becoming India’s second-largest cement producer with an installed production capacity of 67.5 million tonnes annually.

The Adani Group joined the Indian cement industry earlier this year when it paid $10.5 billion for the Holcim AG-owned Ambuja Cements Ltd. and ACC cement firms. The group, led by Asia’s richest man Gautam Adani, wants to expand its power and infrastructure industries.

According to media sources, Gautam Adani and his family are reportedly in preliminary discussions with investors, including Temasek and GIC of Singapore, to raise at least $10 billion to fund a growth in the cement, ports, and renewable energy industries. According to recent claims made by Gautam Adani, the majority of the money would be invested in the energy transition business.