Adani, JSW Cement & ArcelorMittal Eye Acquiring Vadraj Cement
Adani Group, ArcelorMittal Group, and Sajjan Jindal's JSW Cement may be competing to acquire Vadraj Cement, an ABG Shipyard group company going through the Insolvency and Bankruptcy Code (IBC) process. The Bombay High Court ordered the winding up of Vadraj Cement in August 2018, leading to the decision to sell the company under the IBC process. Vadraj Cement's debt resolution process was transferred to the National Company Law Tribunal (NCLT) under the IBC after the court expressed frustration with the slow progress in selling the assets. Vadraj Cement has an integrated cement manufacturing facility in Kutch with a 10,000 TPD clinker unit and a 6-million-tonne cement grinding unit in Surat, Gujarat. The units are currently non-operational due to the sale of captive power plants upon a loan default. The lenders of Vadraj Cement include Punjab National Bank, Union Bank of India, Central Bank of India, Indian Overseas Bank, Bank of India, Bank of Baroda, UCO Bank, and Yes Bank. Lenders anticipate potential buyers to offer between Rs 2,000 crore and Rs 2,500 crore for Vadraj Cement, which has a total debt of Rs 7,000 crore. Adani and JSW Cement have previously declared plans to increase manufacturing capacity, with Adani aiming for 140 mt and JSW Cement targeting 60 mt over the next five years. If ArcelorMittal emerges as a successful bidder, it will mark the company's entry into the cement sector. The Vadraj Cement unit's proximity to Arcelor's steel plant in Gujarat complements its steel business, using steel slag for cement production.
Tags : Adani Group ArcelorMittal Group Sajjan Jindal JSW Cement Vadraj Cement Punjab National Bank Union Bank of India Central Bank of India Indian Overseas Bank Bank of India Bank of Baroda UCO Bank and Yes Bank ArcelorMittal