The Adani Group is planning to acquire the Jaypee Group’s cement assets, which have a capacity of over 9 million tonnes per year. This comes as lenders have started insolvency proceedings against Jaiprakash Associates Ltd (JAL). The Adani Group is currently India’s second-largest cement producer after buying ACC and Ambuja Cement. Led by Gautam Adani, the group aims to capture 20% of the Indian cement market by 2027-28.
Insolvency Proceedings and Opportunities
On June 3, the National Company Law Tribunal (NCLT) in Allahabad accepted JAL for corporate insolvency. This followed ICICI Bank’s application for debt resolution dating back to September 2018. The State Bank of India also moved against JAL for a default of ₹6,893.15 crore.
The insolvency process has been slow for nearly six years, but now it gives Adani a chance to buy Jaypee’s cement assets, including limestone mines and a power plant. However, the bankruptcy proceedings are still in the early stages, with creditors meeting only once on June 29, and no sale process has started yet.
Jaypee’s Financial Situation
Jaiprakash Associates has been selling its cement plants to pay off debt. In 2016, UltraTech bought a large part of its cement business for over ₹16,000 crore. Now, the remaining units are attracting interest from the Adani Group.
In May 2024, Jaiprakash Associates defaulted on loans totaling ₹4,616 crore. This highlights the urgency of the insolvency process and the chance for asset acquisition. The potential deal could increase competition in India’s cement industry, where major companies like UltraTech, Adani, Dalmia, and JSW Cement are looking for opportunities.
