UltraTech Cement said it entered into a binding Memorandum of Understanding with Jaiprakash Associates Limited for the acquisition of its identified cement plants having total cement capacity of 22.4 MTPA (million tons per annum) situated in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka.
This includes a 4 MTPA plant under implementation at a cost of Rs 470 crore, UltraTech said in a statement.
A number of Indian and foreign players were said to have been in the race for these cement plants.
"Upon consummation of the proposed transaction, the company's cement capacity will stand augmented to 90.7 MTPA (current 68.3 MTPA)," it added.
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It was not clear whether the deal includes the two cement plants of JP group whose purchase was called off last week by UltraTech on account of lack of necessary approvals.
In December 2014, UltraTech had said it will acquire JAL's Bela unit (Madhya Pradesh), which has 2.1 MTPA clinker and 2.6 MTPA cement grinding capacity.
The other unit, located at Sidhi also in Madhya Pradesh, has 3.1 MTPA clinker and 2.3 MTPA cement grinding capacity. Both units have a total of 180 MW power generation capacity.