Adani Group Will Not Buy Jaypee Cement, As Company Are Not Working On Any Such Plan

Adani Enterprises on Friday cleared that it will not buy the cement unit of debt-laden Jaiprakash Power Ventures Ltd. Recently, reports claimed that Adani Group is in talks with Jaiprakash Power Ventures Ltd to buy its cement unit.

Jaypee Associate's stock declined 7.29% after it was cleared by the Adani Group. JP shares closed at Rs 10.56 on BSE. At the same time, shares of Adani Group also closed at Rs 3,208, down 0.79%.

What did the Adani Group say?

Adani Group said, “The company is not evaluating any such proposal as of now. So we would not like to comment on the reports of the sources. As per SEBI norms, if we have to put forward anything, we will tell you about it.

Ambuja and ACC were acquired

Adani Enterprises acquired Ambuja and ACC a few days back. After this, there were reports that Adani Group would also buy cement units from India Cement, Nuvoco Vistas, and Jaypee Power. However, the enterprises have now made it clear that they will not buy the cement unit of Jaypee Group.

Jaypee Ltd wants to reduce debt

The cement grinding facility of Jaiprakash Power Ventures Limited has a capacity of 2 mtpa. This company started functioning in October 2014 at Nigri, Madhya Pradesh. According to a filing of the company with the stock exchange, the board of Jaypee Associates had decided to sell its key cement business to reduce the company's debt.

Simultaneously, Jaiprakash Power Ventures had said that its board is looking to sell the Nigri Cement grinding unit along with other non-core assets.

Adani to invest 20 thousand crores in the cement business

The Adani Group had said in September that they would increase the cement-making capacity to 140mtpa in the next five years. Adani Group had said to invest 20 thousand crores on this project. On September 16, Adani Group took over Ambuja and ACC Cement for $ 6.5 billion (about Rs 51.79 thousand crores).

Ambuja-ACC has a production capacity of 70 mtpa

UltraTech is at the top position in terms of cement production with a capacity of 120 million tonnes per annum (mtpa). Whereas, the total cement production capacity of both Ambuja-ACC companies is 70 mtpa. Adani Group will now increase the cement production capacity of these two companies by investing more and more.

Adani Group continues to diversify its business

Started as a commodity trading firm in 1988, the Adani Group came on the national map after foraying into the port business. Over the years, the group has made strides in green energy, media, oil and gas, mining, airport operations, construction, and food processing. Adani Group entered the cement sector last year under the name of Adani Cement Industries.