Dalmia Bharat Limited announced that its wholly owned subsidiary, Dalmia Cement (Bharat) Limited, has executed a Business Transfer Agreement with Jaiprakash Associates Limited and Adani Infra (India) Limited for the acquisition of a cement undertaking comprising integrated manufacturing assets in Madhya Pradesh and Uttar Pradesh. The transaction has been signed at an enterprise value of Rs 2,850 crore.
The acquisition includes cement plants located at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh, with a combined cement manufacturing capacity of 5.2 million tonnes per annum and clinker capacity of 3.3 million tonnes per annum. The assets also include 99 MW of thermal power generation capacity and dedicated railway sidings at Rewa and Chunar, along with access to a common railway siding at Churk.
Following completion of the transaction, Dalmia Bharat’s total cement manufacturing capacity will rise to 54.7 million tonnes per annum. In addition, the company’s ongoing expansion projects at Belgaum, Pune and Kadapa are expected to increase total capacity to 66.7 million tonnes per annum by the second and third quarters of FY2028.The transaction is expected to be completed within the next two weeks, subject to customary closing formalities.
Dalmia Cement had earlier entered into a framework agreement with Jaiprakash Associates in December 2022 to acquire these business assets and resolve ongoing disputes linked to a long-term clinker supply arrangement. However, the transaction could not be completed after Jaiprakash Associates entered insolvency proceedings under the Insolvency and Bankruptcy Code. Following approval of the Adani Group’s resolution plan for Jaiprakash Associates, the parties revisited the agreement structure and executed a fresh Business Transfer Agreement to settle all pending legal proceedings, arbitration matters and commercial disputes.
The acquisition is expected to strengthen Dalmia Bharat’s position in the central Indian cement market while supporting its long-term strategy of becoming a pan-India cement manufacturer. The company stated that the acquired assets provide faster market access compared to greenfield expansion and also offer future growth opportunities through debottlenecking and brownfield capacity enhancement.
Puneet Dalmia, Managing Director and Chief Executive Officer of Dalmia Bharat Limited, said the acquisition represents a strong strategic fit for the company and supports its ambition to expand across high-potential markets in central India. He added that Dalmia’s prior operational familiarity with these facilities under earlier tolling arrangements would help accelerate capacity ramp-up and market integration.
Founded in 1939, Dalmia Bharat is one of India’s leading cement manufacturers with operations across 10 states and 15 manufacturing units. The company is also recognized globally for maintaining one of the cement industry’s lowest carbon footprints and for its leadership in clean energy transition initiatives.
