The Adani Group has already planned to bid for Jaypee Group’s assets. If the bid is successful, then it can expand its real estate portfolio. The company’s plan is a part of the comprehensive resolution package for the Jaypee Group’s flagship entity, Jaiprakash Associates Limited. The company is currently entangled in the largest case of bankruptcy in India. It has INR 50,000 crore in default.
The Adani Group already has elaborate plans to make a planned package offer to the lenders in the insolvency proceedings of Jaiprakash Associates Limited’s assets. The company already has plans to bid for Jaypee Group’s cement assets. As part of the resolution package, the Adani Group plans to offer INR 15,000 crore to the lenders to take control of two of the major Jaypee Group’s businesses: cement and real estate.
The resolution process involves a committee of creditors. This includes major financial institutions like Adani SBI, ICICI, and LIC. The committee will evaluate Adani’s bid as a part of the ongoing insolvency proceedings and they will come up with their decision on whether the Adani Group should acquire control of Jaypee Group’s assets.
By gaining control over the cement sector, the group can extend its hold over the country’s cement market. It will also be able to double its cement manufacturing capacity. Through the buyout, the Adani Group also aims to capture the real estate market demand around the Indian capital’s growing regions like Gurugram, Greater Noida, and Faridabad.
Jaypee Group’s Assets
Jaypee Group’s realty assets mostly include premium golf-centric residences and townships. The 452-acre Jaypee Greens township in Greater Noida is one of its premium assets. It offers luxury villas and apartments to individuals. These luxury villas come with parks, lakes and golf courses. The township also has a sports complex, a 60-acre nature park and a 5-star resort built in collaboration with Thailand’s Six Senses Spa.
Jaypee Greens Wish Township in Noida is another prestigious project. It is a 1,063-acre township with high-rise apartments, villas, and penthouses. The township also has commercial shops, golf facilities, and a 500-bed super-speciality hospital. A school is also present within the premises. A motor racing track is also present in Jaypee Greens Sports City along the Yamuna Expressway. It is a part of the Jaypee Group’s real estate business.
Other than commercial and residential facilities, it offers 2,433 residential plots. It also owns various projects in the NCR region. During FY23, the Jaypee Group resumed two of its stalled projects: The Knights Court and Kalypso Court in the capital area. If the deal goes as planned, Adani will position itself as a huge contender in India’s real estate space. It can give tough competition to some of the biggest industrial houses like Tata Group, Godrej Group, Larsen and Turbo, etc.
Adani’s Real Estate Presence
The Adani Group already operated its real estate business through its two entities: Adani Properties and Adani Realty. These companies have been doing really good business in the real estate sector. With Jaypee Group’s acquisition, the real estate business will get a further kickstart. The company’s realty business is primarily around Mumbai. It is worth INR 60,000 million currently excluding the Dharavi slum rehabilitation project. The Dharvi project may entail INR 4,00,000 million of which INR 56,000 million has already been invested. Around INR 1,50,000 million has been set aside for the initial phase. The company has other projects lined up as well which will further give its business a boost.
Conclusion
The Adani Group, one of the biggest global conglomerates, has always been interested in venturing into new business sectors. Time and again, the conglomerate has been a part of multiple extraordinary ventures, each of which has given a kickstart to its business. By venturing into the real estate and cement manufacturing space, the business group will be able to further diversify its portfolio. The new investments will also strengthen Adani SBI ties. The company will be able to bring new investors towards its business operations.