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8/13/2019 Nasir Ki BS Ki Presentation
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Ultratech Cement Owned by Aditya Bir la Group Largest cement manufacturers
in India.
Third largest in the world.
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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 )
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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.
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JaypeesSide Debt weight of around gross 55k cr
Offload assets to service debts
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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
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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.
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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%.
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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.
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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.
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Readymade cash generating unit for ultratech.
Capital efficiency for jaypee cement.
Synergies benefits for ultratech cement.
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