Birla Corporation today informed BSE that it intends to acquire Jojobera and Sonadih cement businesses from Lafarge India. Jojobera is located in Jharkhand and Sonadih is located in Chhattisgarh.
The transaction would be funded through cash reserves and incremental debt, said the company. The company already has plants in Rajashtan, MP, UP & West Bengal with current capacity of 10 mtpa.
According to Jaspreet Singh of Systematix Shares acquisition of these cement units would increase the company’s capacity 50 percent and would help it grow meaningfully in size. The acquisition is positive for the company both from strategic as well as growth perspective, he said.
He is also not overly worried about the debt the company would have to take because of these acquisitions because the company is currently into net cash.
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