Adani Group Sells JAL Cement Assets to Dalmia Bharat for ₹2,850 Crore Post-Jaypee Acquisition

Dalmia Bharat Acquires JAL Cement Assets as Adani Reorients Portfolio

Dalmia Cement (Bharat) Limited, a wholly owned subsidiary of Dalmia Bharat Limited, has executed a Business Transfer Agreement to acquire cement undertakings from Jaiprakash Associates Limited (JAL) and Adani Infra (India) Limited on May 21, 2026. The acquisition comprises plants located at Rewa in Madhya Pradesh, and Churk, Chunar and Sadwa in Uttar Pradesh, with a combined cement capacity of 5.2 MnTPA and clinker capacity of 3.3 MnTPA, at an enterprise value of ₹2,850 crore.

Strategic Rationale

The Adani Group plans to integrate JAL's assets, including cement plants, power units, and land holdings in the Delhi-NCR region, into its existing power and real estate businesses. The cement divestiture reflects Adani's deliberate asset allocation strategy following its NCLT approval to take control of the bankrupt conglomerate Jaiprakash Associates Ltd, effectively ending a high-profile bidding war for the diverse assets of the former Gaur family crown jewel, which spans real estate, power, cement, and hospitality.

By taking over JAL, Adani will gain nearly 4,000 acres of land, large cement factories, a stake in a power company, hotels, and other industrial units, which fit well with Adani's businesses in real estate, cement, power, and infrastructure. By transferring cement operations to Dalmia Bharat, Adani concentrates its acquisition focus on higher-value segments within its core portfolio.

Terms and Timeline

The acquired assets include 99 MW of thermal power capacity and railway sidings at Rewa and Chunar, along with a common railway siding at Churk, and following completion of this transaction, Dalmia Bharat's cement capacity will increase to 54.7 MnTPA. The company's ongoing expansion projects at Belgaum, Pune and Kadapa are expected to further augment capacity to 66.7 MnTPA by Q2–Q3 FY28.

Historical Context and Settlement

DCBL had initially entered into a framework agreement with JAL in December 2022 for the sale of business assets to settle disputes, including those under a long-term clinker supply agreement. However, the consummation remained pending when JAL was admitted to insolvency proceedings. Following approval of Adani Group's resolution plan under the Insolvency & Bankruptcy Code framework, DCBL requested that the earlier agreement be reconsidered. The fresh Business Transfer Agreement has been executed to settle all disputes and differences, including ongoing legal proceedings and pending arbitral awards.

The transaction marks the conclusion of a complex multi-year negotiation that predates JAL's formal insolvency filing by several years, now executed under Adani's ownership following the approved resolution plan valued at ₹14,535 crore (~US$1.7 billion) as the amount payable to financial creditors under the approved resolution plan.

Broader Adani Asset Allocation

Adani now gets Jaypee's cement plants in Uttar Pradesh and Madhya Pradesh, big-ticket real estate like Jaypee Greens in Greater Noida and Wishtown in Noida, plus hospitality spots, power units, and even the Buddh International Circuit racetrack near Jewar Airport. As part of the resolution, Adani Power has also signed agreements to acquire a 24% stake in Jaiprakash Power Ventures for around ₹2,994 crore and the 180 MW Churk thermal power plant in Uttar Pradesh for ₹1,200 crore.

The cement divestiture to Dalmia Bharat allows Adani Group entities to concentrate capital and management attention on real estate development along the Yamuna Expressway and Power assets—segments where the group already operates at scale. This move is expected to boost Adani Realty and Adani Power.

Market Position

The industry, which is witnessing consolidation through the inorganic route, is led by Aditya Birla Group firm UltraTech Cement with a consolidated capacity of 205.5 MTPA, followed by Adani Group firm Ambuja Cements, which has a capacity of 109 MTPA. Dalmia Bharat's expanded capacity places it among India's top five cement producers by volume, strengthening its presence in central India supply corridors.