Dalmia Bharat has bid for Emami’s cement business. Puneet Dalmia-led Dalmia Cement (Bharat) has put in a bid to acquire the Rs 6,000-crore cement business of Emami.
Though Dalmia Group held initial talks with private equity funds such as CPPIB (Canada Pension Plan Investment Board) and Piramal-Bain for a joint bid, it has now decided to go solo and finance the acquisition internally, said three people with direct knowledge of the development.
“They have submitted the initial EoI (expression of interest) and are currently carrying out due diligence.
Dalmia Group was founded in 1935 by Jaidayal Dalmia and its cement division was established in 1939. For the group, which has grown through a string of acquisitions, Emami’s assets would give it access to India’s eastern market. As per the company’s website, it has manufacturing plants in Tamil Nadu (Dalmiapuram and Ariyalur) and Andhra Pradesh (Kadapa), with a capacity of 9 million tonnes per annum.
“Dalmia Group initially held discussions with PE funds such as CPPIB and Piramal-Bain for a joint bid. However, they have decided to bid solo for this asset,” said an investment banker.
Last year, Dalmia Bharat had joined hands with Piramal-Bain to acquire the troubled Binani Cement during its bankruptcy proceedings. But it did not win the bid.
In response to queries, Dalmia Bharat spokesperson said, “Dalmia Bharat is currently studying the financials provided by the bankers of Emami Cement. The strategy will be decided once we conclude our assessment and firm up our intent to proceed. Moreover, we have a healthy leverage but would always keep all options open.”
ABOUT DALMIA CEMENT
DALMIA CEMENT has been one of the leaders in cement manufacturing since 1939. And, though the modern cement manufacturing market in India is getting more and more competitive with each passing day, they only growing over time. Company’s cement plants in India have grown manifolds in terms of capacity; they are also acquiring some new plants to increase the volume and expand further.
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