Acquisition of cement units of jaiprakash associates limited

1st January, 2015

Mumbai, 23rd December,2014
UltraTech Cement Limited – acquisition of Cement Units of Jaiprakash Associates Limited

The Board of Directors of UltraTech Cement Limited, an Aditya Birla Group company at its meeting held today has approved of acquiring the following cement business of Jaiprakash Associates Limited (JAL) in Madhya Pradesh (MP):

• Integrated cement plant with clinker capacity of 2.1 mtpa and cement grinding capacity of 2.6 mtpa at Bela, Madhya Pradesh (MP);
• Integrated cement plant with clinker capacity of 3.1 MTPA and cement grinding capacity of 2.3 MTPA at Sidhi, MP;
• 180 MW TPP of which 25 MW is situated at Bela and 155 MW at Sidhi

This acquisition will create significant synergies and the surplus clinker will enable UltraTech to augment its cement capacity by a further 1.8 - 2.5 MTPA in addition to the 4.9 MTPA mentioned above. This acquisition will enable the Company to increase its presence in Satna cluster of MP.

The Board has approved the Memorandum of Understanding setting out the broad terms and conditions of the proposed acquisition. The Enterprise Value of this acquisition has been agreed at Rs.5,400 crores.

The transaction is subject to customary due diligence, definitive agreements, and regulatory approvals as may be required. With this acquisition, the Company’s cement capacity in India will increase from ~60 mtpa to ~65 mtpa and with projects underway, the capacity will stand raised to ~71mtpa by 2016.