Vedanta Eyes Jaypee's Power Business: A Strategic Move in India's Energy Sector
Vedanta, the largest producer of aluminium and zinc in India, has shown keen interest in acquiring the power business of Jaypee Group. The company's bid of ₹17,000 crore includes an upfront payment of ₹4,000 crore and aims to expand Vedanta's power production capacity to 3,000 MW in India.
VedantaJaypeePower BusinessAcquisitionIndiaReal EstateNov 01, 2025
The component which is most attractive to us is their power business, because it suits our overall strategy of going to at least 3,000 MW of power production in India, and it fits into that because we have Athena, Serentica, and our own power plants in our aluminium and zinc units, said Arun Misra, executive director, Vedanta.
Vedanta is the highest bidder for Jaypee, offering ₹12,505 crore in terms of net present value. This includes an upfront payment of ₹4,000 crore. The overall offer of Vedanta is reportedly at ₹17,000 crore. Earlier this month, the Competition Commission of India approved Vedanta's bid to acquire Jaiprakash Associates.
How assets like cement and real estate can be used in the overall economic activities of Vedanta, that's for further investigation. But what is the most important for our strategy in the power component, Misra told ET in an exclusive interaction.
Vedanta, which is the largest producer of aluminium and zinc in the country, also has a power business. At ₹2,195 crore, this business accounted for a little over 5% of the company's consolidated revenue. The business' earnings before interest, tax, depreciation and amortization (Ebitda) stood at ₹228 crore in the September quarter, which is about 2% of Vedanta's consolidated Ebitda during the quarter.
In September, Kotak Alternate Assets emerged as the highest bidder for Jaiprakash Power Ventures compulsorily convertible preference shares and its debt, with a cumulative offer of ₹7,400 crore. This could potentially complicate Vedanta's bid for the power business. Jaiprakash Associates holds 24% stake in Jaiprakash Power.
The Gaur family-promoters of Jaiprakash Associates-have also re-entered the race to acquire control of the company. While the Gaur family's offer is higher at ₹18,000 crore, Vedanta is positive that it will acquire Jaiprakash Associates.
Frequently Asked Questions
What is the most attractive component of Jaypee's assets for Vedanta?
The most attractive component for Vedanta is Jaypee's power business, as it aligns with Vedanta's strategy to expand its power production capacity to 3,000 MW in India.
How much is Vedanta's bid for Jaypee?
Vedanta's bid for Jaypee is ₹17,000 crore, which includes an upfront payment of ₹4,000 crore.
What is the role of the Competition Commission of India in this acquisition?
The Competition Commission of India has approved Vedanta's bid to acquire Jaiprakash Associates, clearing a regulatory hurdle for the deal.
What other assets of Jaypee are being considered by Vedanta?
Vedanta is also considering how Jaypee's cement and real estate assets can be used within its overall economic activities, but the power business is the primary focus.
Who are the other bidders for Jaypee's assets?
Kotak Alternate Assets and the Gaur family are also bidding for Jaypee's assets. Kotak Alternate Assets has bid ₹7,400 crore for Jaiprakash Power Ventures, and the Gaur family has offered ₹18,000 crore to acquire control of the company.
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