UltraTech Cement is in talks with Jaiprakash Associates to acquire the latter’s cement assets in Rewa district of Madhya Pradesh.

The projects located in Rewa have a capacity of seven million tpa. The acquisition will help Jaiprakash to reduce its debt.

The company’s debt has increased four-fold in the five years through March 2014, to $10.3 billion (approx Rs 61,099.6 crore). In 2013, UltraTech agreed to acquire a cement unit of the company in Gujarat.

Besides, Jayprakash is also planning to offload its cement assets in Himachal Pradesh, where it has two plants with a combined production capacity of 3.5 million tpa. For the purpose, the company is scouting for buyers.

In March 2014, the company offloaded its 74 per cent stake in Bokaro Jaypee Cement - a JV with SAIL - to Dalmia Bharat for $194 million (approx Rs 1,150.80 crore).

After its recent divestments, Jaiprakash has a cement production capacity of 26.4 million tpa. The company is exploring options to offload assets valued at about $1.35 billion (approx Rs 8,008.2 crore), by March 2015.