Delhi-based Puneet Dalmia Group’s Dalmia Cement Ltd. has agreed to acquire Meghalaya-based Adhunik Cement, strengthening its presence further in the North East region.

Dalmia Cement will pay an enterprise value of 1,085 crore to acquire Adhunik Cement. Rs 560 crore will be paid in equity value, while another 525 crore will be spent clear the North Eastern company’s debts.

Puneet Dalmia, managing director and chief executive of Dalmia Cement, said Adhunik Cement had an installed capacity to manufacture 1.5 million tonnes of cement per annum, and that their immediate target was to hike the capacity utilization.

Speaking about the deal, Dalmia said, "Our immediate target is to increase the capacity utilisation and then we will ramp the capacity, depending upon the demand of cement in that part of the country.”

With a market share of around 10 per cent, Adhunik Cement has a strong presence in northeastern region of the country.

Adhunik Cement is a JV (joint venture) between Adhunik Group and MSP Group. Apart from the cement factory, the JV has a power plant with 25MW. Adhunik Group’s other businesses includes mining, power, steel, and value-added steel products.

Adhunik Cement is Dalmia Cement’s second major acquisition in the North East region. Earlier this year, it acquired a 50 per cent stake in Calcom of Assam for around 238 crore.