nasir ki bs ki presentation

8/13/2019 Nasir Ki BS Ki Presentation

1/12


2/12

Ultratech Cement Owned by Aditya Bir la Group Largest cement manufacturers

in India.

Third largest in the world.


3/12

Jaypee Cement It is subsidiary arm of Jai Prakash Asso ciates

Ltd.

Group is diversified infrastructure conglomerate

with expertise in engineering and construction ,

power, cement, real-estate, hospitality,

expressway, sports& education (Non profit )


4/12

o UltratechsSide To attain Market leader in industry

Require Geographical Expansion throughout.

Need for capacity addition in Gujarat :

Our Gujarat plants presently operating at ~ 95%;

Lost volume in Gujarat post disposal of SDCCL; Required additional volume to support costal

movementsMumbai, Kochi, Mangalore and Sri

Lanka markets.


5/12

JaypeesSide Debt weight of around gross 55k cr

Offload assets to service debts


6/12

1. plant with latest technology and split grinding unit.

2. Land Area5479 Ha,

3. Limestone Reserve ~ 500 MnTsufficient for 90 years.

4. Strong infrastructure assets:

a) CPP - 57.5 MW,

b) DG - 30 MW,

c) Jetty2500 DWT barges: for clinker and coal

movement

d) Desalination plantmeeting water requirement.

5. Cement bag manufacturing unit - Capacity : 3 lacs bag

per day


7/12

JP cement will be demerged from its holding

company JP Associates.

This will reduce debt of 3800cr from JP associates

which still has a gross debt of 55000 cr.

Enterprise value (EV) Rs. 3,800 Crores +/- Net

working capital at actuals at Closing.


8/12

Consideration is equal to EV less liabilities taken

over.. Such Consideration to be discharged by issue

of equity shares of UTCL:

Current estimate of consideration is approxRs.147Crores;

Consideration to be adjusted at Closing for

movements in working capital, liabilities, assets

and the share price of UTCL; Consideration Capped at Rs.150 Crores

Maximum dilution as per agreed formula at current

prices ~ 0.32%.


9/12

Meet UltraTechs(UTCL) need to enhancecapacity in Gujaratto serve local, coastal &export markets;

High quality operational assets with immediatecash generation potential

Sizable land and mining reserve supports

doubling of the capacity.


10/12

Manufacturing, marketing and supply chain

synergies.

Tax advantage on carried forward business lossesand unabsorbed depreciation of the Unit.

Fly ash available near the grinding unit.

Captive power plant.


11/12

Readymade cash generating unit for ultratech.

Capital efficiency for jaypee cement.

Synergies benefits for ultratech cement.


12/12

nasir ki bs ki presentation

Documents