Assets of Jaiprakash Associates up for grabs under insolvency process

Jaiprakash Associates Limited (JAL) is currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). The company, which was admitted into CIRP on June 3, 2024, has a diversified portfolio of assets across various sectors, including real estate, cement, hospitality, and engineering & construction. This report outlines the key assets available for purchase under the CIRP of Jaiprakash Associates.

1. Real Estate Assets

Jaiprakash Associates has a significant presence in the real estate sector, with several high-value projects located in prime areas, particularly in the National Capital Region (NCR). The real estate assets include:

• Jaypee International Sports City, Yamuna Expressway:
  • Land Area: 2,470 acres
  • Development Potential: Residential, commercial, and institutional real estate
  • Location: Proximity to the upcoming Jewar International Airport
• Jaypee Greens, Greater Noida:
  • Land Area: 452 acres
  • Features: 7.5-hole golf course, clubs, resort, conference & banquet facilities, spa, health club, and recreational options
• Jaypee Greens, Wishtown, Noida:
  • Land Area: 1,063 acres
  • Features: Integrated township with an 18.9-hole golf course, shopping arcade, and office spaces
• Facility Management Business:
  • Annual Revenue: INR 200 crore
  • Scope for Revenue Enhancement: Across various projects

2. Cement Assets

JAL has a strong presence in the cement industry, with several plants and limestone mines. However, the cement plants are currently non-operational but can be restarted with capital infusion. Key assets include:

• Rewa Cement Plant:
  • Location: Madhya Pradesh
  • Capacity: Clinker – 3 MTPA, Grinding – 1.65 MTPA
  • Captive Power Plant: 62 MW
• Chunar Cement Grinding Unit:
  • Location: Uttar Pradesh
  • Capacity: 2.5 MTPA
  • Captive Power Plant: 37 MW
• Churk Cement Grinding Unit:
  • Location: Uttar Pradesh
  • Capacity: 1 MTPA
  • Captive Power Plant: 180 MW
• Sadwa Cement Blending Plant:
  • Location: Uttar Pradesh
• Leased Limestone Mines:
  • Location: Madhya Pradesh
  • Captive Power Capacity: 279 MW

3. Hospitality Assets

JAL owns and operates several premium hotels and resorts across India, particularly in Delhi NCR, Agra, and Mussoorie. The hospitality assets include:

• Jaypee Vasant Continental, Delhi: 119 keys
• Jaypee Siddharth, Delhi: 102 keys
• Jaypee Greens Golf Resort & Spa, Greater Noida: 170 keys
• Jaypee Palace & Convention Center, Agra: 341 keys
• Jaypee Residency Manor, Mussoorie: 135 keys

4. Engineering & Construction (E&C) Assets

JAL has a long-standing reputation in the engineering and construction sector, with expertise in hydropower, irrigation, and infrastructure projects. The E&C division has several ongoing projects, including:

• Naigarhi I & II Micro Irrigation Projects: Madhya Pradesh
• Alimineti Madhav Reddy Project: Irrigation Tunnels, Telangana
• Palamuru Rangareddy Lift Irrigation Scheme: Telangana
• Naitwar Mori Hydroelectric Project: Uttarakhand (60 MW)
• Punatsangchhu-II HEP, Bhutan: Hydropower Generation (1020 MW)
• Arun-3 Hydroelectric Project: Nepal (900 MW)

5. Investments in Group Companies

JAL holds significant investments in various group companies, which are also part of the assets available under CIRP. Key investments include:

• Jaiprakash Power Ventures Limited (JPVL):
  • Stake: 24%
  • Operational Assets:
    • Nigrie Super Thermal Power Plant (1,320 MW)
    • Bina Thermal Power Plant (500 MW)
    • Vishnuprayag Hydro Power Plant (400 MW)
    • Nigrie Cement Grinding Unit (2 MTPA)
• Jaypee Fertilizers & Industries Limited (JFIL):
  • Stake: 100%
  • Subsidiary: Jaypee Uttar Bharat Vikas Private Limited (JUBVPL)
  • Stake in Kanpur Fertilizers & Chemicals Limited (KFCL): 92.79%
• Bhilai Jaypee Cement Limited (BJCL):
  • Stake: 74%
  • Operational Assets:
    • Clinker Plant at Satna
    • Integrated Cement Plant in Bhilai (2.2 MTPA)

6. Other Investments

JAL also has investments in several other subsidiaries and associate companies, including:

• Himalyan Expressway Limited (100%)
• Jaypee Cement Hockey (India) Limited (100%)
• Jaypee Infrastructure Development Limited (100%)
• Jaypee Ganga Infrastructure Corporation Limited (100%)
• Jaypee Agra Vikas Limited (100%)
• Yamuna Expressway Tolling Limited (100%)

Conclusion

The assets available for purchase under the CIRP of Jaiprakash Associates Limited (JAL) are diverse and span across multiple high-growth sectors, including real estate, cement, hospitality, and engineering & construction. These assets offer significant potential for value unlocking and long-term returns for potential investors. The resolution process under IBC provides a clean slate for the acquisition of these assets, with protections and immunities for resolution applicants under Section 32A of the IBC.

Potential investors are encouraged to conduct thorough due diligence and seek professional advice before making any investment decisions. The resolution professional, Mr. Bhuvan Madan, and his team are available for further inquiries and assistance in the due diligence process.

Also See: NCLT directs Jaiprakash Associates to continue with single resolution plan option