Dalmia Cement Inks Massive ₹2,850 Cr Deal to Acquire JAL Cement Assets

Dalmia Bharat’s wholly owned subsidiary, Dalmia Cement (Bharat) Limited (DCBL), has signed a Business Transfer Agreement to acquire cement assets of Jaiprakash Associates Limited (JAL) for an enterprise value of ₹2,850 crore.

The agreement was signed with JAL and Adani Infra (India) on May 21, after the Adani Group acquired JAL under the Insolvency and Bankruptcy Code (IBC). The transaction is expected to be completed within two weeks.

Inside ₹2,850 Crore Deal

The acquisition includes cement plants located at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh. The assets together have a cement capacity of 5.2 million tonnes per annum (MnTPA) and clinker capacity of 3.3 MnTPA.

The deal also includes 99 MW of thermal power capacity and railway sidings at Rewa and Chunar, along with a common railway siding at Churk.

Following the acquisition, Dalmia Bharat’s total cement capacity will increase to 54.7 MnTPA. The company said ongoing expansion projects at Belgaum, Pune and Kadapa are expected to further raise capacity to 66.7 MnTPA by Q2-Q3 FY28.

What Delayed the Deal

DCBL had first entered into a framework agreement with JAL in December 2022 for the acquisition of these assets and settlement of disputes linked to a long-term clinker supply agreement. However, the transaction could not be completed after JAL entered insolvency proceedings.

After the Adani Group’s resolution plan for JAL was approved under the IBC framework, DCBL signed a fresh agreement with JAL and Adani Infra to settle pending disputes and complete the transfer of the cement undertaking.

How Deal Expands Dalmia’s Reach

Commenting on the acquisition, Puneet Dalmia, Managing Director & CEO, Dalmia Bharat said the deal is a “great strategic fit” for the company and will help strengthen its presence in Central India.

“It helps us move forward in our journey to be a pan-India player and provide a strong head start to serve the high-potential markets in the Central region,” Dalmia said. He added that the expansion potential of these assets and their proximity to Dalmia’s captive mines could help create a future capacity hub for the company.

Dalmia also said the company’s earlier tolling arrangement with these plants gives it operational familiarity and stronger connections with channel partners and vendors. “We believe that this will help us in faster ramp up of capacities and quicker inroads into the market,” he added.

Dalmia Bharat’s shares have remained under pressure in recent months. The stock has declined more than 10% over the past one month and is down nearly 12% in the last six months. On a year-to-date basis, the cement maker’s shares have fallen over 16%.