Kumar Mangalam Birla-led Aditya Birla Group´s flagship firm UltraTech Cement has decided to acquire two cement units of Jaiprakash Associates with a combined capacity of 4.9 million tonnes per annum in Madhya Pradesh for an enterprise value of Rs 5,400 crore.
The cement plants also include captive power plants with a combined capacity of 180 MW.
The move would fit into Kumar Mangalam Birla´s stated ambition of having a cement capacity of 100 million tonne per annum by 2020. UltraTech is India´s largest cement maker with a capacity of 60 million tonne per annum, which will increase to 65 million tonne per annum post this acquisition and 71 million tonne per annum by 2016 with projects underway.
Aditya Birla group has also submitted a non-binding bid to acquire some of Holcim-Lafarge´s cement assets in Brazil and a few other countries.