Displaying items by tag: Jaypee Group
India: UltraTech Cement has received the approval of the Bombay and Ahmedabad High Courts to acquire Jaypee Cement's plant in Gujarat.
UltraTech has already received the approval of the Securities and Exchange Board of India (SEBI), shareholders and creditors to buy the 4.8Mt/yr cement plant with a 57.5MW coal-fired thermal power plant, limestone reserves for over 90 years and a captive jetty at Sewagram, Maharashtra State, for US$639m. As part of the deal, UltraTech will absorb a debt of US$614m of Jaypee Cement and issue UltraTech shares worth US$25.2m to Jaypee Associates.
Himachal Pradesh State Pollution Control Board orders Jaypee Cement to halt over-production
11 June 2014India: The Himachal Pradesh State Pollution Control Board (HPSPCB) has ordered Jaypee Cement to halt its over-production immediately, according to local media. In order to ensure that the directive is followed the board has asked the electricity provider to limit the power supply that is provided to the cement plant.
Worker dies in freak accident in cement factory
12 May 2014India: A worker was killed on 10 May 2014 while cleaning the belt of a crusher in Jaypee's cement plant in Chhijwar, Madhya Pradesh.
The incident took place when the worker, Gulab Patel, who was cleaning the crusher belt got trapped in the machine. The victim was rushed to Rewa's Sanjay Gandhi Hospital but he died on the way.
Patel's family have alleged that he was killed inside the plant and that the management failed to inform them about the incident. The family said that they came to know about the incident only through other workers. The plant management has agreed to pay compensation of US$16,753, provide a job to a family member and also provide free training to the son of the deceased.
India: Dalmia Cement Bharat Ltd's (DCBL) cement production capacity will reach 20Mt/yr following its acquisition of Jaiprakash (JP) Associates' 74% stake in a joint venture with the Steel Authority of India (SAIL) for US$190m.
The board of DCBL has approved the acquisition of a 74% stake in Bokaro Jaypee Cement Ltd (BOJCL), which is a 74:26 joint venture between JP Associates and SAIL.
"With this acquisition, DCBL's current installed capacity (including subsidiaries and associates) will reach 20Mt/yr," said a DCBL spokesperson.
BOJCL has a 2.1Mt/yr cement unit at Bokaro in Jharkhand. The joint venture has a 30 year clinker supply arrangement with JP Associates and a slag supply arrangement for the same period with SAIL.
"The transaction was completed in a record time with excellent chemistry and cooperation between the professional teams of JP Associates and DCBL," said Mahendra Singhi, Group CEO of Cement, DCBL. "The total enterprise value is US$190m. The proposed acquisition would be funded through a mix of debt and internal accruals."
DCBL also holds a 47.3% stake in OCL India and is expanding capacity there. The company is also setting up a 2.5Mt/yt cement plant at Belgaum in Karnataka with an investment of US$222m.
UltraTech in talks to buy Jaypee’s cement assets in Himachal
21 February 2014India: UltraTech Cement Ltd is in talks to buy Jaypee's cement assets in Solan, Himachal Pradesh, for US$644m, according to anonymous sources. This comes shortly after UltraTech's purchase of Jaypee's Gujarat cement plant.
For Jaypee, subsidiary of Jaiprakash Associates Ltd, the deal will be another effort towards trimming its US$8.54bn debt (as of 31 March 2013). The company sold 1.21km2 of land in Greater Noida to realty firm Gaursons India Ltd for US$241m in May 2013. Jaypee is also close to finalising the sale of two of its three operating hydroelectric projects to a consortium led by Abu Dhabi National Energy Co PJSC for at least US$1.5bn.
UltraTech's cement manufacturing capacity increased to 59Mt/yr from 54Mt/yr after it bought Jaypee's Gujarat plant. The company aims to increase its capacity to 70Mt/yr by 2015, according to Kailash Birla, senior executive president and chief financial officer of UltraTech. The Solan assets, if acquired, will add another 4Mt/yr of capacity. The grinding and blending unit and the cement plant in consideration have capacities of 2Mt/yr each.
HP cabinet cancels allotment of cement plant to Jaypee
20 February 2014India: The Himachal Pradesh cabinet has cancelled the allotment of a cement plant to Jaypee in Chamba district as the company failed to meet the extended deadline to start production.
Official sources said that the government was not satisfied with Jaypee's reply to a show cause notice. The Memorandum of Understanding (MoU) for the cancelled project was signed in February 2007.
The US$128m project with a proposed production capacity of 2Mt/yr was due to begin operations within five years after receiving clearance from the Environment Ministry. The plant was expected to provide direct employment to over 1000 people.
CCI approves US$605m UltraTech-Jaypee deal
03 February 2014India: UltraTech has received the green signal from the Competition Commission of India for its US$605m agreement with Jaypee Cement Corporation to purchase its Gujarat-based businesses.
UltraTech plans to acquire Jaypee's facilities, which include an integrated cement manufacturing plant at Sewagram, a captive power plant and mining leases and limestone reserves.
CCI has announced that the agreement will not affect competition in the market as companies like Lafarge and ABG Cement are initiating plants in Rajasthan and Gujarat respectively. CCI also stated that the entry of new companies counterbalances the competition market, which is affected by the merger of two similar companies, especially if the newly entered party is of ample size.
Public litigation threatens Jaypee sale
20 September 2013India: The Indian high court in Gujarat has ordered that a US$600m deal to sell the Kutch cement plant from Jaypee Cement to UltraTech Cement will be subject of outcome of a public interest litigation (PIL) filed by local villagers.
According to the Times of India, the Kharai panchayat has filed a PIL complaining that the cement company has encroached upon grazing land, water bodies and public roads. The PIL demands that the encroachment should be removed and that the high court should intervene to make the area free from pollution caused by mining and the dumping of dust.
Counsel Mehul Sharad Shah contended that over 5000 hectares of land was given at a cheap rate to Gujarat Anjan Cement to create a cement plant for a lease period of 1997 to 2008 on the condition that the company would put up construction within two years. After not following the condition, it transferred the lease for US$120m to Jayprakash Associates, which merged with the J P Corporation. The PIL alleges that the company encroached on gauchar land, water bodies, public roads and began polluting by dumping alkali dust. Cuts in jobs for local labourers has also added to tension in the area.
The high court has said that the transfer of lease will be subject to final outcome of the PIL.
Jaypee Cement to sell 51% stake in Gujarat cement plant to Ultratech
11 September 2013India: Jaypee Cement plans to sell a 51% stake in its 5Mt/yr cement plant in Gujarat to Ultratech. The value of the deal has been placed at around US$633m. A Jaypee official described the deal as 'finalised' to the Press Trust of India.
Jaypee and Ultratech have been in negotiations over the deal for a year. Ultratech reported to the Bombay Stock Exchange in December 2012 that it had not issued any press releases on the rumoured sale in a bid to calm market speculation.
In 2008 the owner of Jaypee Cement, Jaiprakash Associates, purchased purchased Bina Power Supply (BPSL) from the owner of Ultratech, Aditya Birla Group.
Jaypee nears end of Gujarat asset sale
12 December 2012India: The talks between Jaypee Group and Aditya Birla Group regarding the sale of the former's Gujarat based cement units have finally moved to the final stages, according to local media. It was reported that valuations of the deal, which had already resulted in failed acquisition attempts by others, have continued to cause delays.
Birla has been negotiating the cost of Jaypee's Gujarat cement units with the aim of paying a total of US$800m. The reports say that Birla had offered to purchase the units at US$160/t of installed capacity. This is significantly lower than the US$200/t paid during deals between Holcim and ACC.