Avnija (the “Company”), Dalmia Bharat Enterprise Ltd’s subsidiary announced that it has received Rs. 500 crores, which is the first tranche of investment from affiliates of Kohlberg Kravis Roberts & Co. L.P. ( “KKR”).
Previously announced in May, the Company and KKR entered into definitive agreements under which KKR had agreed to invest up to Rs 750 crores.
“While the Company is very well capitalized today, the additional capital enables us to aggressively consolidate our existing market position, deleverage our balance sheet and pursue attractive organic & inorganic growth options, given the current down cycle. This engagement with KKR would also enable us access to best international governance & business practices,” said Mr Puneet Dalmia, Managing Director of Dalmia Cement.
“We are excited to partner with the Dalmia family and back them for future capital requirements in the cement business. While the cement industry by nature is cyclical, this is a long-term investment for KKR in a great operating business with a proven management team,” said Mr. Sanjay Nayar, a Member of KKR and CEO of KKR India.
About Avnija (manufacturers of Dalmia brand of cements)
Avnija is a wholly owned subsidiary of Dalmia Bharat Enterprise Ltd, is a leading cement manufacturer with plants in southern states of Tamil Nadu (Dalmiapuram & Ariyalur) and Andhra Pradesh (Kadapa), with a capacity of 9 MTPA. The Company also holds 45.4% stake in OCL India Limited (5.3 MTPA) along with a 100% stake in Dalmia Cement Ventures Limited having upcoming green field projects of 10 MTPA across the country. Company is a multi spectrum cement player and a pioneer in super specialty cements used for Oil wells, Railway sleepers and Air strips.
For more information, please visit our website www.dalmiacement.com
