New Delhi: Dalmia Bharat on Friday said it will acquire the cement assets of debt-ridden Jaiprakash Associates, which has been acquired by billionaire Gautam Adani-led Adani Enterprises through insolvency proceedings.

Dalmia Cement (Bharat) Ltd (DCBL), a wholly-owned subsidiary of Dalmia Bharat, has already executed a Business Transfer Agreement (BTA) with Jaiprakash Associates Ltd for the transaction, which is expected to complete within two weeks, a statement said.

Following the takeover, Dalmia Bharat's cement capacity will increase to 54.7 million tonne per annum (MTPA).

The BTA has been signed for acquisition of cement plants at Rewa (Madhya Pradesh), Churk, Chunar and Sadwa (Uttar Pradesh), with 5.2 MTPA cement capacity and 3.3 MTPA clinker capacity, at an enterprise value of Rs 2,850 crore, Dalmia Bharat said. Besides, the acquired assets also entail 99 MW of thermal power capacity with railway siding. Terming the deal "Strategic Fit", Dalmia Bharat said it will also help in market diversification, reducing regional volatility. Over funding, Dalmia Bharat said it will be a mix of debt & internal accrual.

"In addition to this, the ongoing expansion projects at Belgaum, Pune and Kadapa will further augment the company's cement capacity to 66.7 MTPA by Q2-Q3 FY28," it said.

MD & CEO of Dalmia Bharat Puneet Dalmia said:"Our familiarity with these assets under the earlier tolling arrangement gives us a deep understanding of the facilities and helps us establish strong connect with channel partners and vendors. We believe that this will help us in faster ramp up of capacities and quicker inroads into the market."

DCBL had entered into framework agreement in December 2022 with JAL (before initiation of insolvency) for sale of business assets along with other relevant agreements in pursuant thereof including a BTA and cement sale purchase agreement. These agreements were entered into with a view to settling all disputes with JAL including under the 'long-term clinker supply agreement'.