India's Competition Commission has given its approval to Dalmia Bharat 's proposal for a complete acquisition of Jaiprakash Associates Ltd (JAL) through its wholly-owned subsidiary, Dalmia Cement (Bharat) Ltd. This development marks a significant step in the ongoing insolvency proceedings of JAL, a company grappling with a substantial debt burden of ₹57,185.00 crore.

Insolvency Proceedings and CCI Approval

JAL was admitted to the corporate insolvency resolution process by the National Company Law Tribunal (NCLT) Allahabad on June 3. The Competition Commission of India's (CCI) approval is a crucial and mandatory step under the Insolvency and Bankruptcy Code, paving the way for the submission of resolution plans to the Committee of Creditors.

Multiple Bidders in the Fray

While Dalmia Bharat has secured CCI approval, it's not the only player eyeing JAL's assets. Other prominent bidders, including Adani Enterprises, Vedanta Group, Jindal Power, and PNC Infratech, have also sought CCI clearance for their respective resolution plans. This indicates a competitive landscape for the acquisition of JAL's diverse asset portfolio.

JAL's Asset Portfolio

Jaiprakash Associates Ltd operates across multiple sectors, including:

• Cement
• Real Estate
• Hospitality
• Engineering

The company's assets include:

• Stalled real estate projects in Greater Noida
• A sports city project near Jewar airport
• Hospitality properties in Delhi-NCR, Agra, and Mussoorie
• Non-operational cement plants in Madhya Pradesh and Uttar Pradesh

Debt Situation and Major Creditor

The National Asset Reconstruction Company Ltd (NARCL) has emerged as JAL's largest creditor after acquiring loans from a consortium led by the State Bank of India. This positions NARCL as a key stakeholder in the ongoing resolution process.

Implications and Next Steps

The CCI's approval of Dalmia Bharat's acquisition bid represents a critical milestone in JAL's insolvency proceedings. As the process unfolds, the Committee of Creditors will evaluate the resolution plans submitted by various bidders. The outcome of this process could potentially lead to a significant restructuring of JAL's operations and debt, with far-reaching implications for the company's future and its various stakeholders.

Dalmia Bharat Limited , one of India's leading cement manufacturers, has reported its highest ever quarterly EBITDA of ₹883.00 crores for Q1, marking a significant 32% year-on-year increase. The company also unveiled ambitious expansion plans, signaling confidence in India's growing cement demand.

Financial Highlights

• EBITDA per ton reached ₹1,261.00, a 40% increase from the previous year
• EBITDA margin improved to 24.3% from 18.5% in the previous year
• Net sales realization improved by 9% quarter-on-quarter
• Sales volumes declined 6% year-on-year to 7 million tons, but remained flat when excluding tolling volumes from the previous year

Expansion Plans

The Board of Directors has approved several major expansion projects:

1. A ₹3,287.00 crore investment for:

   • 3.6 million ton clinker unit at Kadapa
   • 6 million ton grinding unit at Kadapa
   • 3 million ton bulk terminal in Chennai

2. Ongoing projects include:

   • 3.6 million ton clinker unit at Umrangso, Assam (trial runs to begin in September 2025)
   • Belgaum-Pune project (expected completion by end of FY27)

3. The company aims to reach 63.5-64 million tons cement capacity by FY28

Market Outlook

Puneet Dalmia, Managing Director and CEO, expressed optimism about the cement sector's growth prospects:

• Cement demand expected to grow 6-7%
• Growth supported by government infrastructure spending
• Strategy focuses on balancing volume growth with profit margins across different markets

Financial Position

• Net debt stood at ₹873.00 crores
• Debt-to-EBITDA ratio at a healthy 0.33x

Future Outlook

Dalmia Bharat remains committed to its expansion strategy while maintaining financial discipline. The company is evaluating the potential acquisition of Jaiprakash Associates' cement assets, which could further boost its capacity and market presence.

Puneet Dalmia commented, "We are investing in this sector with a clear conviction that India will do well and consolidation will increase. Our strategy is to create a pan-India footprint while establishing significant presence in each market we operate in."

As India's cement demand continues to grow, Dalmia Bharat appears well-positioned to capitalize on the opportunities ahead, balancing expansion with profitability and market share gains.