Jaiprakash Associates of Manoj Gaur is reportedly readying to dispose off its Gujarat-based cement plants for a lower value to UltraTech Cement. The cement units are to be sold at a valuation of $130 a tonne, compared to $160 a tonne it was seeking earlier.
Jaiprakash Associates was expecting Rs 4,500 crore from the sale of the cement units in Gujarat, but now it will get below Rs 4,000 crore. Burdened with Rs 24,337 cr debt, Jaiprakash Assosciates has resorted to sell off the cement units.
The Gujarat units have a capacity of 4.8 million tonne annually (mtpa) and will help Ultratech increase its presence in western India.