JK Lakshmi Cement and Chettinad Cement are bidding to acquire Telangana-based Deccan Cements, India’s The Economic Times has reported.
Deccan Cements, which is expected to have an operational capacity of around 4Mta by the end of this year, is seeking an enterprise value of INR31.10m (US$360m) for the company, according to insiders, translating to around US$90/t of capacity.
Deccan Cements' plants are located on the outskirts of Andhra Pradesh's second largest city of Vijayawada, although its corporate headquarters are in Hyderabad. The company is helmed by Parvathi Penmetcha. Deccan has engaged EY (formerly Ernst & Young) for a potential sale, as per sources. Andhra Pradesh's new capital city of Amaravati is fuelling a state driven infrastructure boom in a region that has a significant number of integrated cement units.
Delhi-based JK Lakshmi Cement has no manufacturing presence in Andhra Pradesh or Telangana, while Chennai-based Chettinad Cement has manufacturing facilities in both states.
