Winning Bizness Desk
Mumbai. Adani Enterprises has cleared that it is not going to buy the cement unit of debt-laden Jaiprakash Power Ventures Ltd. Recently, reports had claimed that Adani Group is in talks with Jaiprakash Power Ventures Ltd to buy its cement unit. After this clarification, Jaypee Associate's stock declined by 7.29%. Adani Group said, “The company is not evaluating any such proposal as of now. So we would not like to comment on the reports of the sources. As per SEBI norms, if we have to put forward anything, we will definitely tell about it.
Acquired Ambuja and ACC a few days back
Adani Enterprises had acquired Ambuja and ACC a few days back. After this there were reports that Adani Group would also buy cement units of India Cement, Nuvoco Vistas and Jaypee Power. However, the enterprises have now made it clear that they will not buy the cement unit of Jaypee Group. The cement grinding facility of Jaiprakash Power Ventures Limited has a capacity of 2 mtpa. This company started functioning from October 2014 at Nigri, Madhya Pradesh. According to a filing of the company with the stock exchange, the board of Jaypee Associates had decided to sell its key cement business to reduce the company's debt. Simultaneously, Jaiprakash Power Ventures had said that its board is looking to sell the Nigri Cement grinding unit along with other non-core assets.
TO increase cement making capacity
The Adani Group had said in September that they would increase the cement making capacity to 140mtpa in the next five years. Adani Group had said to invest 20 thousand crores on this project. On September 16, Adani Group took over Ambuja and ACC Cement for $ 6.5 billion (about Rs 51.79 thousand crore). UltraTech is at the top position in terms of cement production with a capacity of 120 million tonnes per annum (mtpa). Whereas, the total cement production capacity of both Ambuja-ACC companies is 70 mtpa. Adani Group will now increase the cement production capacity of these two companies by investing more and more.