Adani Group: The Adani Group, led by billionaire Gautam Adani, said on Tuesday that it would buy Orient Cement, a firm of the CK Birla Group, for Rs 8,100 crore as part of its expansion drive. Ambuja Cement, a cement and building materials company of Adani Cement and part of the diversified Adani Group, has signed a binding agreement to acquire Orient Cement Limited (OCL) at an equity value of Rs 8,100 crore.
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According to the joint statement, its step-down unit will see Ambuja acquire 46.8 per cent of OCL from its existing promoters and certain public shareholders. Furthermore, the acquisition will be fully funded through internal accruals. The latest acquisition will add 16.6 MTPA (million tonnes per annum) capacity to Adani Cement, which operates through Ambuja Cement in the sector.
In June of this year, Adani announced the acquisition of Hyderabad-based Pena Cement for an enterprise value of Rs 10,422 crore, adding 14 MTPA of capacity to the country’s second-largest manufacturer.
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“This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja’s acquisition,” said Karan Adani, Director of Ambuja Cements.
By acquiring OCL, Ambuja is poised to achieve 100 MTPA cement capacity in FY25, he said, adding that the acquisition would help enhance Adani Cement’s presence in key markets and improve its all-India market share by 2 per cent.’
OCL has a clinker capacity of 5.6 MTPA and a cement capacity of 8.5 MTPA along with statutory clearances to increase clinker capacity by another 6.0 MTPA and cement capacity by another 8.1 MTPA.
(with Agencies Input)
