CoC Approves Dalmia Bharat Plan for Bhilai Jaypee Cement

Resolution Plan Clearance Marks Key Shift in Assets Transfer

NEW DELHI, India — Cement major Dalmia Bharat Limited (BSE: 542216, NSE: DALBHARAT) announced that the Committee of Creditors (CoC) handling the Corporate Insolvency Resolution Process (CIRP) of Bhilai Jaypee Cement Limited (BJCL) has approved the resolution plan submitted by its wholly owned subsidiary, Dalmia Cement (Bharat) Limited (DCBL).

Following the approval of the resolution plan by the lenders' committee, the Resolution Professional overseeing Bhilai Jaypee Cement has formally issued a Letter of Intent (LoI) to Dalmia Cement (Bharat) Limited, confirming it as the successful resolution applicant.

The resolution plan approval allows Dalmia Bharat to gain full operational control over Bhilai Jaypee Cement's assets. These assets include a 2.2 million tonnes per annum (MTPA) cement grinding plant situated in Bhilai, Chhattisgarh, alongside a 1.1 MTPA clinker manufacturing facility located in Babupur, Satna district, Madhya Pradesh.

The execution of the final resolution plan remains subject to formal sanction and approval from the National Company Law Tribunal (NCLT) bench and other mandatory regulatory compliance clearances under the Insolvency and Bankruptcy Code (IBC), 2016.

Strategic Expansion in Central and Eastern Indian Markets

The insolvency resolution approval concludes a prolonged corporate restructuring process surrounding Bhilai Jaypee Cement, which was originally established as a joint venture between Jaiprakash Associates Limited (JAL) and the Steel Authority of India Limited (SAIL).

Dalmia Cement (Bharat) Limited had previously entered into definitive agreements in April 2023 to acquire a 74% stake in Bhilai Jaypee Cement for an enterprise value of Rs 666 crore. However, that transaction lapsed due to the expiration of mutually agreed timelines and the subsequent admission of the target company into insolvency proceedings under the IBC framework.

The acquisition fits within Dalmia Bharat’s ongoing strategy to expand its operational footprint across central and eastern India. By acquiring operating grinding and clinker production assets via the insolvency process, the firm reduces the gestation period typically associated with greenfield cement projects.

Official Sources

According to official regulatory filings submitted to the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE), the Resolution Professional issued the Letter of Intent after receiving the requisite majority vote from the Committee of Creditors under Section 30(4) of the Insolvency and Bankruptcy Code, 2016.

The company confirmed that the next procedural step involves filing the approved resolution plan before the designated bench of the NCLT for final approval. The ultimate transfer of management control, asset ownership, and financial settlement will take place following NCLT order issuance and fulfilment of conditions precedent.

Corporate Statement

According to official disclosures filed with capital market regulators:

"Organizers stated that the Committee of Creditors of Bhilai Jaypee Cement Limited has approved the resolution plan submitted by Dalmia Cement (Bharat) Limited. The Resolution Professional has issued the Letter of Intent, confirming the subsidiary as the successful resolution applicant, subject to final approval from the Hon'ble National Company Law Tribunal".

Why It Matters

For cement industry observers, equity investors, and regional consumers, the CoC approval carries clear operational implications:

• Capacity Consolidation: Adds 2.2 MTPA of cement grinding and 1.1 MTPA of clinker capacity to Dalmia Bharat's manufacturing footprint.

• Insolvency Resolution: Provides a legal mechanism to resolve long-standing liabilities and reactivate distressed building material assets under IBC provisions.

• Supply Chain Optimization: Enhances regional distribution logistics across Chhattisgarh, Madhya Pradesh, and adjacent eastern markets.

Key Facts at a Glance

• Approved Resolution Plan: CoC approves Dalmia Cement (Bharat) Limited's resolution bid for Bhilai Jaypee Cement.

• Manufacturing Assets: Covers a 2.2 MTPA grinding unit in Chhattisgarh and a 1.1 MTPA clinker plant in Madhya Pradesh.

• Legal Status: Letter of Intent received; final execution awaits formal sanction from the NCLT.

• Strategic Intent: Bypasses earlier terminated share purchase agreements to acquire complete asset control via the corporate insolvency framework.

Frequently Asked Questions (FAQs)

What company submitted the approved resolution plan for Bhilai Jaypee Cement?

Dalmia Cement (Bharat) Limited (DCBL), a wholly owned subsidiary of listed cement producer Dalmia Bharat Limited, submitted the resolution plan.

What assets are included in the Bhilai Jaypee Cement acquisition?

The transaction encompasses a 2.2 MTPA cement grinding unit in Bhilai, Chhattisgarh, and a 1.1 MTPA clinker manufacturing plant in Babupur, Madhya Pradesh.

Is the acquisition of Bhilai Jaypee Cement complete?

The resolution plan has been approved by the Committee of Creditors (CoC) and a Letter of Intent has been issued, but the deal remains subject to final approval from the National Company Law Tribunal (NCLT).

Source: National Stock Exchange of India (NSE), BSE Limited, Insolvency and Bankruptcy Board of India (IBBI)