*Jaiprakash Associates*’ cement division, is trying to acquire a controlling
stake in *Zawar Cement*’s defunct grinding unit at Wadi, in Karnataka’s
Gulbarga district.

Zawar Cement had in turn bought the Wadi unit from *ACC*.

Jaypee is expected to set up a 2.5 mn tonnes per annum (mtpa) grinding unit
in this plant to be commissioned this year.

The present capacity of the (Wadi) plant is 0.6 million tonne, which has
been defunct for a long time. It supposedly has lime stone reserves of 180
million tonne. However, the limestone mine lease may need to be renewed.

 Transaction Note

Jaypee Cement has a capacity of 25 mtpa and expects to end this financial
year with a capacity of 36.5 mtpa. At present, its business is concentrated
in the northern belt. It is looking to expand cement supply in Karnataka and
Maharashtra though the Wadi acquisition.


The Zawar Group, based out of Pune, has business interests in cement, power,
mineral water and real estate.  Zawar had launched a Rs 2,400 crore project
for modernisation and expansion work at the plant. Production capacity was
supposed to further increase to 5 mtpa and include installation of a 50 mw
thermal power plant.

-- 
Regards

Hardik Shah

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