Ambuja Cement, with its subsidiaries ACC Ltd, had the capacity to produce 77.4 MTPA and with this acquisition, its capacity would go to 78.9 MTPA.
Gautam Adani’s Adani Group owned Ambuja Cements has acquired My Home Group's Tamil Nadu-based grinding unit for a total value of Rs 413.75 crore, which would provide it access to the southern market. This acquisition is funded through internal accruals, taking the Adani Group's total cement capacity to 78.9 million tonnes per annum (MTPA).
The plant, located near the Tuticorin Port, will be value accretive as it will aid in enhancing Ambuja's coastal footprint across southern markets of Tamil Nadu and Kerala, it added.
“This acquisition provides access to the southern market customers with an opportunity to experience and instil their trust in one of the most iconic and trusted brands – Ambuja Cement,” said a statement from Ambuja Cement.
Furthermore, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with coastal movement of clinker from the Sanghipuram Plant ensuring cost-efficient operations, it added.
Earlier in December last year Adani Group completed the acquisition of Sanghi Industries, which has a 2,700-hectare integrated manufacturing unit along with a captive jetty.
The Adani Group is also expanding the capacity of the captive jetty at Sangipura at coastal Gujarat.
Ambuja Cement, with its subsidiaries ACC Ltd, had the capacity to produce 77.4 MTPA and with this acquisition, its capacity would go to 78.9 MTPA.
"In addition to the infrastructure and geographical advantages, Ambuja Cements will also inherit the existing dealer network and retain current employees, facilitating a smooth transition and enabling the rapid ramp-up of utilisation," Ajay Kapur, CEO, Cement Business, Adani Group, said.
Adani group is expanding its capacity and has plans to capture around one-fifth of the Indian cement market by FY28 with a capacity of 140 MTPA.
Last month the Adani group had infused Rs 6,661 crore in Ambuja Cements by converting 21.20 crore warrants into shares, after which its stake in the country's second-largest cement company increased by 3.6 per cent to 66.7 per cent.
Presently Adani Cement is the second leading company in the sector after the Aditya Birla group firm UltraTech Cement, which has a total capacity of 151.6 MTPA. In September 2022, Adani Group acquired controlling stakes in Ambuja Cement from Swiss firm Holcim for cash proceeds of USD 6.4 billion (about Rs 51,000 crore).
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