Shree Cement plans to buy Jaypee Associates’ cement grinding unit at Panipat, Haryana.

The Board of Jaiprakash Associates has approved the proposed sale of its 1.5 million tonne per annum capacity cement grinding unit for a total enterprise value of Rs 360 crore.

The proposed deal is now subject to approval from the lenders of Jaypee Associates and other concerned authorities.

The acquisition of this grinding unit will help Shree Cement to further consolidate its position in the industry. At present, Shree Cement has a capacity of 17.5 million tonne per annum (tpa). They have plants at Beawar, Ras, Khushkhera, Jobner (Jaipur) and Suratgarh in Rajasthan, Laksar (Roorkee) in Uttarakhand, and Aurangabad in Bihar.

Jaypee Group is expected to reduce its overall debt of Rs 60,000 crore by selling its cement assets. Even after this transaction, Jaypee Cement will continue being India’s third manufacturer with a total capacity of 29 million tpa.