Jaiprakash Associates in talks with CRH
Jaiprakash Associates is in advanced talks with CRH, an Irish building materials group for selling its cement plants in Gujarat and Andhra Pradesh. But nothing has been finalised yet on the deal which is expected to bring up to Rs 9,000 crore for Jaiprakash Associates and will help the company reduce its total consolidated debt of about Rs 45,000 crore.
Both sides are expected to meet in the last week of this month to give a final shape to the transaction. Jaiprakash Associates, a diversified Delhi-based conglomerate with interests in cement, power, infrastructure, real estate, construction and hospitality, had spun off its cement units in Gujarat and Andhra Pradesh into a separate company last year.
Jaypee Cement Corp, as the new company is called, runs a plant each in Sewagram, Kutch, and Wanakbori, Gujarat, with a total capacity of 4.8 million tonne, as well as a 5-million-tonne unit in Andhra Pradesh's Krishna district.
Jaiprakash Associates has a total capacity of around 23 million tonnes, making it the third-largest player in India after Holcim and AV Birla Group-owned UltraTech.