New Delhi, May 22 -- Dalmia Cement (Bharat) Ltd, a wholly owned subsidiary of Dalmia Bharat Ltd, has inked a deal to acquire cement plants previously operated by Jaiprakash Associates Ltd, which was recently acquired by the Adani Group through the insolvency process.
The transaction, with an enterprise value of Rs 2,850 crore (around $297 million) and which adds 5.2 MnTPA cement capacity, includes plants at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh. It also includes 3.3 million tonnes of clinker capacity, 99 MW of thermal power and railway sidings. The deal is expected to close within two weeks and will help Dalmia Bharat augment its cement production capacity.
The acquisition will lift Dalmia Bharat's total cement capacity by a little over 10% to 54.7 million tonnes per annum. When combined with ongoing expansions at Belgaum, Pune and Kadapa, the company's capacity is projected to reach 66.7 million tonnes by fiscal year 2028-29.
Dalmia Bharat, India's fourth-largest cement producer, currently operates at about 49.5 million tonnes per annum following expansions completed in fiscal 2025. The company has set longer-term goals of 75 million tonnes by fiscal 2028 and 110-130 million tonnes by 2031.
The latest deal follows the collapse of a broader 2022 agreement. In December 2022, Dalmia had agreed to acquire a larger portfolio of Jaypee cement assets totalling 9.4 million tonnes for Rs 5,666 crore to resolve disputes linked to a long-term clinker supply arrangement.
That transaction failed to close after Jaiprakash Associates entered insolvency proceedings. The Adani Group subsequently won the bid for the parent company, with the National Company Law Tribunal (NCLT) approving its resolution plan in March 2026.
Following the change in control, Dalmia negotiated a narrower transaction focussed on the central India assets. The new agreement aims to settle all outstanding disputes, including those from the earlier framework deal, pending legal proceedings and an arbitral award.
The plants have been idle for some time. Dalmia said the acquisition offers faster entry into central markets than building new facilities, with scope for debottlenecking and brownfield expansion given the proximity to raw material sources.
Puneet Dalmia, managing director and CEO of Dalmia Bharat, described the assets as a strong strategic fit. "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," he was quoted as saying in a statement issued by the company.
Published by HT Digital Content Services with permission from VC Circle.