Ultratech, a part of Aditya Birla Group, will acquire two plants from Jaiprakash Associates (JAL) in Madhya Pradesh, for a value of Rs 5,400 crore.

The company has received approval from the board for the acquisition of JAL’s Bela unit which has 2.1 million tpa clinker and 2.6 million tpa cement grinding capacity.

The other unit at Sidhi has 3.1 million tpa clinker and 2.3 million tpa cement grinding capacity. The total power generation of both the units is 180 MW.

With this acquisition, Ultratech’s cement capacity in India is expected to increase to around 65 million tpa from around 60 million tpa. With the other projects underway, it will go up to around 71 million tpa by 2016.

Debt-ridden Jaiprakash Associates has managed to disinvest assets of over Rs 20,000 crore and still have 22 million tpa capacity after this sale. This can help to eliminate the debt and improve its balance sheet.

Last year, Ultratech had bought Jaiprakash's cement plant in Gujarat having 4.8 million tpa capacity for Rs 3,800 crore.