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| Edited By: Pooja Sarkar |Source: DNA |Updated: Mar 17, 2018, 03:54 AM IST
Jaypee Cement, the cement venture of Jaiprakash Associates, is set to buy a controlling stake in Zawar Cement’s defunct grinding unit at Wadi, in Karnataka’s Gulbarga district.
The Zawar Group, based out of Pune, has business interests in cement, power, mineral water and real estate. Zawar Cement had in turn bought the Wadi unit from ACC.
Valuations could not be ascertained, but Jaypee is expected to set up a 2.5 million tonnes per annum (mtpa) grinding unit in this plant. Sources say the project will be commissioned this year.
Jaypee Cement has a capacity of 25 mtpa and expects to end this financial year with a capacity of 36.5 mtpa. At present, its business is concentrated in the northern belt. It is looking to expand cement supply in Karnataka and Maharashtra though the Wadi acquisition.
Sources told DNA Money the deal was “confirmed”, but Rahul Kumar, group CFO for Jaiprakash Associates, said, “We are in discussion with them. We are yet to conclude the transaction.” He declined to offer any further details.
A report by Alchemy Research said, “The present capacity of the (Wadi) plant is 0.6 million tonne, which has been defunct
for a long time. It supposedly has lime stone reserves of 180 million tonne.” However, the limestone mine lease may need to be renewed.
Zawar had launched a Rs 2,400 crore project for modernisation and expansion work at the plant. Production capacity was supposed to further increase to 5 mtpa and include installation of a 50 mw thermal power plant. When contacted, Vijay Zawar, promoter of the Zawar Group, declined to speak on the matter.
