KKR to invest Rs 750crores in Dalmia Cement to Form the Largest Private Cement Company in India

- Largest Private Equity Investment in India's Cement Industry

May 7th, 2010 -- Dalmia Cement (Bharat) Ltd. (DCBL), and Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR") today announced the signing of a definitive agreement under which KKR has agreed to invest up to Rs 750crores in DCBL's wholly owned unlisted subsidiary ("Company") which will house post restructuring DCBL's 9MTPA cement manufacturing capacity, DCBL's stake in OCL India Limited (5.3MTPA capacity) along with the upcoming green field projects of 10MTPA across the country. The use of proceeds will be for both organic / inorganic growth and de-leveraging.

"When we realigned our businesses in March, 2010, one of our goals was to create separate pure play entities that could thrive on their own and have flexibility to raise capital. This transaction with KKR is not just about capital but the foundation of a long term relationship. It will enable us to enhance our capacity and market share through organic as well as inorganic routes, while benefiting from KKR's global network and proven value creation capabilities," said Mr. Puneet Dalmia, MD of Dalmia Cement (Bharat) Limited.

"We are excited to be working with a dynamic and entrepreneurial family with a successful execution track record in India. While the cement industry by nature is cyclical, this is a long-term investment in a great family business, its management team and in India's economy. This is a way to invest behind and contribute to the continued development of India's residential, commercial, and public sector infrastructure," said Mr. Sanjay Nayar, a Member of KKR and CEO of KKR India.