Strategic buyers and investors scouting for insolvency-affected cement assets
MUMBAI
: Several strategic buyers as well as investors are actively scouting for cement manufacturing companies which are currently undergoing the
corporate insolvency resolution process
under the Insolvency & Bankruptcy Code.
One of the most sought-after assets in the sector is the cement business of debt-laden
Jaiprakash Associates Ltd
(JAL). The company has four plants in North and Central India and has a capacity of about 6 million tonnes per annum. Its plants are at Rewa in Madhya Pradesh and Chunar, Churk and Sadwa in Uttar Pradesh.
The company's resolution professional, Bhuvan Madan, has received expressions of interest from companies including
Adani Enterprises
, Dalmia Cement (Bharat) Ltd,
Vedanta Ltd
and Rashmi Metaliks Ltd. Apart from cement, JAL also has assets in power, hospitality and real estate, and hence about two dozen bidders have shown interest in multiple assets.
Investors and strategic buyers are also closely observing the ongoing insolvency cases against companies, including Jammu & Kashmir Cements, Kirtiman Cements & Packaging and Gujarat-based Dhara Cements (India).
"The sector has been quite active and holds considerable potential for distressed M&A," said Karishma Dodeja, partner at the law firm Trilegal. "This is because of the wave of consolidation brought on by Ultratech and Adani Group, the strong infrastructure push by the government and the high debt burden of some of the smaller cement companies, making them attractive targets for acquisition," she said.
Recently, the Mumbai bench of the National Company Law Tribunal (NCLT) approved Vadraj Cement's acquisition by Nirma group-owned cement maker
Nuvoco Vistas Corp
.
Around the same time, Virgo Cements, a smaller operator with ₹74 crore in admitted claims, also secured a resolution after its lenders, including
PNB
and
Indian Bank
, voted unanimously in favour of PRAG India's bid.
Legal experts are citing pricing, location and synergies as the three primary reasons for the surge in deals in the sector. Most cement companies are available at a discount. Also, medium and small players are located at less-penetrated and high-growth markets and for large players, addition of medium and smaller cement makers offers attractive cost optimisation opportunities.
Nishith Dhruva, managing partner of law firm MDP Legal, said those cement plants, which are being operated as going concerns, are witnessing keen interest from the strategic players, especially those with approval for additional capacities.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Value Chain
an hour ago
- Fashion Value Chain
JKLU Professor First Indian to Win Hills Millennium Award for International Designers
Prof. A Balasubramaniam, the founding Director of the Institute of Design at JK Lakshmipat University (JKLU) in Jaipur has become the first Indian to win the Hills Millennium Award 2025, a prestigious award for international designers presented annually by the UK-based Institute of Engineering Designers (IED). Prof. A Balasubramaniam, Director of the Institute of Design at JK Lakshmipat University (JKLU), is the first Indian to win the Hills Millennium Award for international designers Prof. Balasubramaniam was selected for the award in recognition of his lasting contributions to the field of product design. He will be felicitated on 12th July in Birmingham, UK. The Hills Millennium Award is given annually by IED to an international designer who has made major contributions to the professional areas of Engineering Design, and/or Product Design. Prof. Balasubramaniam has designed market-leading products, as diverse as tractors and torches, for industry leaders such as Eveready, Eicher, Usha, Hero Motors, Bajaj, and intergovernmental organisations such as UNDP. He was a consultant to National Innovation Foundation and NIIT. He also writes a popular blog on Design practice in India. The selection of Professor Balasubramaniam for Hills Millennium Award 2025 is a testament to the growing influence of Indian designers at the world stage. 'Indias design ethos – rooted in centuries of craft, innovation, and cultural heritage – has long shaped global sensibilities, often without due recognition. That is why it is heartening to see the international design community acknowledge this legacy by honouring Prof. Balasubramaniam with the Hills Millennium Award,' said Professor Alka Mahajan, Pro Vice Chancellor, JK Lakshmipat University. An alumnus of National Institute of Design, Ahmedabad, he had served as the National President of ADI (Association of Designers of India) from 2022-24. Before joining the Institute of Design at JK Lakshmipat University, he was the Dean of IILM School of Design in Gurgaon from 2007 to 2010 and has also been a member of the Academic Board for several design institutes, including the School of Planning and Architecture, New Delhi (SPA New Delhi) and Nirma University. 'I am deeply honoured and humbled by the Institute of Engineering Designers' recognition. This prestigious award is not just a personal achievement, but a reflection of the collective effort to expand the global design dialogue. I truly believe this recognition signals a critical shift toward a more inclusive narrative in design – one that values and amplifies the diverse voices and traditions shaping our field,' Prof. Balasubramaniam said on winning the award. Past winners of the Hills Millennium Award include the legendary automative designer Frank Stephenson, the designer behind some of the world's most iconic cars, including the 2001 MINI Cooper, Ferrari F430, and McLaren P1, among others. Other awardees include Dorian Marjanovic, Professor Emeritus at University of Zagreb; veteran engineering design professional Crispin Hales; and Marcus Engman, Creative Director at IKEA Retail. The Institution of Engineering Designers is a British professional engineering institution founded in 1945.
Mint
an hour ago
- Mint
Air India Crash Risks Fueling Up to 30% Jump in Insurance Premiums
(Bloomberg) -- Indian insurance policy sellers expect the cost of coverage for airlines to spike as much as 30% after the deadliest aviation crash in more than a decade. Sajja Praveen Chowdary, director at Indian broker Policybazaar, expects premiums for hull, war-risk, and liability coverage to increase by 10% to 30% in the next renewal cycle. Rohit Boda, group managing director at broker Group, predicts a rise of 10% to 25%. Premium hikes of that scale would be larger than previous crashes, given the enormity of the Air India accident, the brokers said. The crash killed 241 on board and dozens on the ground when it smashed into a residential area in the city of Ahmedabad on June 12. In the wake of a crash in South Korea last year that left all but two of the 181 passengers dead, premium increases were in the range of 15% to 18%, according to a UK-based reinsurer. Insurance claims for the Air India crash are expected in the realm of $475 million, including those for the aircraft's hull and engine as well as additional liability for loss of life, Bloomberg News reported earlier. Air India's fleet is insured for about $20 billion in total, with an annual premium near $30 million, according to data from Policybazaar. 'A catastrophe of this scale will contribute to hardening of global rates,' said Chowdary, director at Policybazaar for Business. Globally, crashes accounted for the majority of the $15 billion in aviation claims during the five year period ended 2024, according to a report by Allianz SE. Growth in air travel, fueled by Asia-Pacific and North America, was expected to drive premiums to more than $8 billion, according to the report. The insurance premium increase would be for all airlines, said people familiar with the matter, who asked not to be identified discussing private matters. They added that the impact will be redistributed to airlines across the globe. The premium increase is expected to be large, and further loss of aircraft could drive premiums to a record, the people said. Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here. (Updates with context on South Korea crash in fourth paragraph) More stories like this are available on
The Print
an hour ago
- The Print
Assam is wary of digital payments. It's stalling the growth of MSMEs
According to a recent survey conducted by the National Council of Applied Economic Research (NCAER) for the Directorate of Economics and Statistics (DES), Assam, nearly 87 per cent of MSMEs in the state have adopted at least one form of digital payment. This is promising. Assam, like many other states, has witnessed a quiet but notable shift in MSMEs, particularly in the adoption of digital payment systems. From small roadside vendors to urban retail shops, the signs of digital transformation are now visible across the state. QR codes and UPI-based payments are no longer rare. They are part of the new normal. The micro, small, and medium enterprise or MSME sector has long been recognised as a crucial pillar of the Indian economy. Known for its ability to create employment with minimal capital and drive inclusive growth, the sector contributes significantly to local livelihoods and national development. Among medium enterprises, the adoption rate stands at an impressive 95.5 per cent. Small enterprises report an adoption rate of 87.5 per cent, while micro enterprises follow closely at 86.7 per cent. These figures signal a high level of digital readiness and a willingness among entrepreneurs to embrace change. However, a closer examination of transaction data reveals a paradox. While the adoption is high, actual use of digital modes of payment remains relatively low. The NCAER survey shows that only about 31.3 per cent of total transactions for micro enterprises are conducted digitally. Small enterprises fare better, with 51.47 per cent of total transactions being digital, and medium enterprises lead with 76.57 per cent. This wide gap between the adoption and active use of digital payment systems tells a larger story—one where the missing link is not the business owner, but the customer. Why customers don't pay digitally The reality on the ground is that even though MSMEs have installed digital infrastructure, a significant share of their customers still prefer to pay in cash. Whether it is a local grocery store, a tea stall, or a tailoring shop, the digital payment option is often available but rarely used. This reluctance among customers stems from a combination of behavioural, technological, and cultural factors. For many people, particularly in tier-3 towns and rural areas, cash remains a deeply embedded mode of payment. It feels more tangible and trustworthy than a digital transaction that takes place on a screen. Another important barrier is digital literacy. Many customers, especially the elderly or those with limited education, find mobile payment apps difficult to navigate. Others fear fraud or worry that if something goes wrong with the transaction, there is no clear route for recovery. In some cases, customers believe that using cash gives them more flexibility or helps them manage their spending better. This gap between the availability of digital options and their actual use is not just a technological issue. It has far-reaching implications for the MSME ecosystem. Digital payments create financial records that are crucial for accessing credit, applying for government schemes, or building business credibility. Without a strong history of digital transactions, many small businesses remain outside the formal financial system. This makes it harder for them to grow, scale up, or survive during economic shocks. In a region like Assam, where MSMEs are central to employment and income generation, this disconnect could hold back broader development. Also read: Maruti, Kia to Hyundai – why automakers are turning to trains to transport cars Bring MSMEs in digital mainstream It is also worth noting that the Northeast has been identified as a key focus area for India's future growth. Described by Prime Minister Modi as the 'Ashta Lakshmi'—a potential source for the country's eightfold prosperity—the region is expected to play an important role in national progress. For this vision to become a reality, the MSME sector in Assam and neighbouring states must be brought fully into the digital mainstream. This will not happen if digital readiness is limited to business owners alone. Customers must also become active participants in the digital economy. So far, most policy interventions have focused on the supply side—on helping MSMEs adopt digital tools, install QR codes, and attend training sessions. These efforts have delivered encouraging results. But the next phase must address the demand side. There is a need to invest in customer awareness, trust-building, and habit formation. People must be shown that digital payments can be easy, safe, and rewarding. Campaigns in local languages, community-based outreach, and visible grievance redressal systems can all help build public confidence. Above all, digital financial literacy must be treated as a public good—something that empowers citizens and strengthens the economy. MSMEs in Assam have taken an important step toward a digital future. They have embraced technology and demonstrated their willingness to evolve. But unless customers also make this shift, the benefits of digital transformation will remain limited. A truly digital economy cannot be built by businesses alone. It requires customers who are informed, confident, and willing to adopt new behaviours. Every stakeholder—from governments and banks to fintech companies and civil society—must focus on turning digital payments into a habit. The groundwork has been laid, and the opportunity is clear. It is only a matter of bringing the customer on board. Palash Baruah is a fellow at the National Council of Applied Economic Research (NCAER), Delhi. He tweets @DrPalashBaruah. Poonam Munjal is a professor at NCAER. She tweets @poonam_munjal. Views are personal. (Edited by Prasanna Bachchhav)
