Ultratech cement recent JP cement plant acquisition: An accretive acquisition :: IndiaNivesh, link

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
Ultratech cement recent JP cement plant acquisition: An
accretive acquisition
Recently, Ultratech has approved the acquiring of the following cement business of
Jaiprakash Associates Limited (JAL) in MP:
1. Integrated cement plant with clinker capacity of 2.1 MTPA and cement grinding
capacity of 2.6 mtpa at Bela ;
2. Integrated cement plant with clinker capacity of 3.1 MTPA and cement grinding
capacity of 2.3 MTPA at Sidhi, MP;
3. 180 MW TPP of which 25 MW is situated at Bela and 155 MW at Sidhi
The Enterprise Valuation of this acquisition has been agreed at INR 54,000 mn .
As per our view, this acquisition will create significant synergies and the surplus
clinker for the company. It will enable the company to augment its cement capacity
by a further 1.8-2.5 MTPA in addition to the 4.9 MTPA mentioned above . Also,
Ultratech cement capacity will increase from ~60 mtpa to ~ 65 mtpa and with
projects underway; the capacity would be ~71 MTPA by 2016.

LINK
http://www.indianivesh.in/Admin/Upload/635562155107047500_Ultratech_Co%20Update_05012015.pdf