Dalmia Bharat subsidiary DCBL signs fresh BTA with Jaiprakash Associates and Adani Infra. The ₹2,850 crore deal adds 5.2 MTPA capacity with clinker, power, and rail assets. Commercial production expected Q2 FY27.
Dalmia Bharat Limited will acquire a 5.2 million tonne per annum (MTPA) cement capacity portfolio from Jaiprakash Associates Limited (JAL) for an enterprise value of ₹2,850 crore as part of the insolvency resolution process led by the Adani Group. The transaction lifts Dalmia Bharat's total cement capacity from 49.5 MTPA to 54.7 MTPA, with further expansion to 66.7 MTPA by FY28 through ongoing projects at Belgaum, Pune and Kadapa.
The acquisition is executed through Dalmia's wholly owned subsidiary Dalmia Cement (Bharat) Limited (DCBL), which signed a fresh Business Transfer Agreement on May 21. Completion is expected within two weeks, and commercial production from the acquired units is slated for the second quarter of FY27.
The path to this deal involved legal complexity. DCBL had entered a framework agreement with JAL in December 2022 for a sale of business assets and a long-term clinker supply agreement. That deal stalled when JAL was admitted to insolvency proceedings under the Insolvency and Bankruptcy Code (IBC).
Post-approval of the Adani Group's resolution plan by the National Company Law Tribunal (NCLT), DCBL requested that the earlier agreement be considered. The new Business Transfer Agreement between DCBL, JAL, and Adani Infra (India) Limited is designed to "settle all disputes and differences between them concerning the ongoing legal proceedings, the pending arbitral award and/or the Framework Agreement," according to DCBL's regulatory filing.
Key insight: This deal closes a long-running dispute and gives Dalmia Bharat a faster route to central India capacity than greenfield construction. Execution risk remains around integrating assets that were part of a stressed entity.
The portfolio includes an integrated cement unit at Rewa (Madhya Pradesh), grinding units at Chunar and Churk (Uttar Pradesh), and a blending unit at Sadwa (Uttar Pradesh). Together they deliver 5.2 MTPA cement capacity and 3.3 MTPA clinker capacity.
Additional infrastructure:
Dalmia Bharat expects these logistics assets to reduce transportation costs and improve operational efficiency in the central Indian market.
Dalmia Bharat's existing operations are concentrated in southern and eastern India. The Jaypee assets add a central India footprint in Madhya Pradesh and Uttar Pradesh, two states with strong demand from infrastructure and housing projects.
The railway sidings at Rewa, Chunar and Churk allow bulk cement movement by rail, significantly cheaper than road transport. Dalmia Bharat stated the acquisition "provides faster access to central Indian markets compared to a greenfield project and offers scope for further expansion through debottlenecking and brownfield initiatives."
The company expects improved returns from this region given its "pricing environment" and Dalmia's own cost leadership. Central India typically sees less price volatility than coastal markets because of lower import competition and more stable fuel logistics.
While the capacity addition is clear, several risks could weaken the thesis.
The ₹2,850 crore enterprise value works out to roughly ₹548 per tonne of capacity, competitive with greenfield costs while carrying less execution risk. Investors should track the two-week closing window and the Q2 FY27 production start. The central India pricing environment and Dalmia's cost leadership are the key buffers against oversupply risk. Legal challenges to the Adani resolution plan remain the highest uncertainty factor.
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