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Jaiprakash Associates may offload stake in Gujarat cement plant

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Jaiprakash Associates is reportedly in the final stages of offloading its 100 per cent stake in the 4.8-mn tpa Gujarat cement plant for Rs 4,000 crore at an enterprise valuation of $150 a tonne, according to a Credit Suisse report.

Jaiprakash Associates, which is the parent company of the Jaypee Group, wants to sell the unit in order to repay part of its debt.

The report adds that lack of fund-raising would deteriorate its debt coverage ratios and result in lenders charging a higher interest rate for the firm.

The consolidated debt of the company stood at Rs 53,174 crore as of March 2011. Its standalone debt, as of September 2012, was Rs 19,549 crore, exchange filings showed.

The company raised huge debt to finance several of its high-cost infrastructure projects, including the Noida-Delhi Expressway, apart from investing in cement units.

Jaiprakash Associates and the Birlas held discussion on the stake sale and the former was demanding a valuation of $170 a tonne. However, Birlas refused to agree to that and hence the deal was delayed. It is learnt that the deal may be carried out at $150 a tonne.

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Concrete

Holcim UK drives sustainable construction

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Holcim UK has released a report titled ‘Making Sustainable Construction a Reality,’ outlining its five-fold commitment to a greener future. The company aims to focus on decarbonisation, circular economy principles, smarter building methods, community engagement, and integrating nature. Based on a survey of 2,000 people, only 41 per cent felt urban spaces in the UK are sustainably built. A significant majority (82 per cent) advocated for more green spaces, 69 per cent called for government leadership in sustainability, and 54 per cent saw businesses as key players. Additionally, 80 per cent of respondents stressed the need for greater transparency from companies regarding their environmental practices.

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Concrete

GCCA releases LCR system

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The Global Cement and Concrete Association (GCCA) has launched the Low Carbon Ratings (LCR) system for cement and concrete, a new global rating based on products’ carbon footprints. The system uses a clear AA to G scale to help customers prioritise sustainability in material selection across construction sectors worldwide. The GCCA says that the LCR system is designed to be easily recognisable, with a simple visual graphic that indicates a product’s rating and provides consistency and comparability to other products.

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Concrete

FLSmidth opens eco-friendly plant in Casablanca

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FLSmidth has inaugurated a €21 million mill liner manufacturing plant in Casablanca, covering 11,250m² with a production capacity of 6,500 tonnes annually. The LEED-certified facility significantly reduces carbon emissions by up to 56 per cent and fully recycles water used in the manufacturing process. Up to 250 jobs will be created in the Valparaíso region. Mikko Keto, CEO, highlighted the plant as a symbol of FLSmidth’s commitment to sustainable mining and community engagement in South America. Earlier in 2024, the Denmark-based company announced plans to sell its cement division to sharpen its focus on mining operations.

 

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