Calcutta, Aug. 25: Shree Cement is looking to acquire a 1.50-million-tonne grinding unit of Jaiprakash Associates in Haryana for Rs 360 crore.

The board of directors of the company today gave its consent to acquire the unit located at Panipat, subject to the completion of due diligence and necessary approvals and consent, Shree Cement today said in a filing on the Bombay Stock Exchange.

H.M. Bangur, managing director of Shree Cement, later told The Telegraph that the acquisition was more of a “call on the future” and would help the company to expand its capacity in North India.

“We expect the cement market to grow in the coming couple of years. For 2014-15, we have enough capacity but, as the market improves, we want to be equipped with sufficient grinding capacity,” Bangur said.

Shree Cement, a major player in Rajasthan, has plans for grinding units in Chhattisgarh and Bihar.

Though based out of Calcutta, the company that sells cement under the Shree Ultra, Bangur and Rockstrong brands is present mostly in North India.

Bangur said the company was eyeing a capacity of 23 million tonnes, which includes expansion in the east.

He said the company had evaluated the option of setting up a grinding unit on its own which could have involved purchase of land and construction.

“The cost would have been similar to what we are looking to pay,” Bangur said to explain the inorganic expansion.

The Jaypee group is selling assets to cut its debts, which had accumulated to Rs 60,000 crore.

The company had sold its Gujarat plant to UltraTech and a stake in a Bokaro cement unit.

The net profit of Shree Cements during the quarter ended June was Rs 277.02 crore against Rs 284.31 crore in the corresponding quarter a year ago.

The company’s share price today fell to Rs 7,939 from Friday’s close of Rs 8,039.50 on the Bombay Stock Exchange.