Reliance Cementation bids for SJC
Reliance Cementation, the cement arm of Anil Dhirubhai Ambani Group (ADAG) plans to acquire the Tamil Nadu-based Sree Jayajothi Cements (SJC). "I am expecting to sell the business for at least Rs 2,000 crore," said TR Kannan, Promoter of Jayajothi Group. Negotiations has already started and the proposed acquisition, if happens, will help Reliance Cementation to make a ready-made entry into cement industry. SJC sells its produce in the four southern states of Tamil Nadu, Andhra Pradesh, Karnataka and Kerala under the brand name, Jayajothi. "We have proved our capacity. Now, it is up to Reliance to take the call," said Kannan, who is also the Managing Director of SJC. Jayajothi Cements was incorporated as a public limited company in December 2006 with the aim to develop, construct and operate cement manufacturing facility. The company set up a greenfield integrated cement making facility in Kurnool District of Andhra Pradesh with a combined clinkerisation capacity of 2 mtpa and cement grinding capacity of 3.2 mtpa. Anil Ambani, Chairman, ADAG had announced the Group's foray into the cement business in 2009 and spelt out plan of setting up plants with an aggregate capacity of 20 million tonne per annum at a cost of nearly Rs 10,000 crore over the next five years. Reliance Cementation has already signed a Memorandum of Understanding (MoU) with the Maharashtra Government to set up a 5 mtpa cement plant in Yavatmal at an investment outlay of Rs 2,250 crore. This is in addition to the MoUs the company has already signed with the governments of Madhya Pradesh and Gujarat.