New Delhi: ACC Ltd, a subsidiary of Adani-owned Ambuja Cement Ltd, on Monday said that it has acquired the remaining 55% stake in Asian Concretes and Cements Private Ltd (ACCPL) for ₹425.96 crore.
This buyout, funded entirely by internal accruals, brings ACC’s ownership of ACCPL to 100%, with the total enterprise value of the acquisition at ₹775 crore, inclusive of ₹35 crore in cash and equivalent, the company said said in a filing with the stock exchanges.
This acquisition aligns with ACC’s growth strategy and commitment to creating value for stakeholders, said Ajay Kapur, chief executive, ACC Ltd.
This acquisition increases ACC’s total cement production capacity to 38.55 MTPA, and, when combined with Ambuja, raises the Adani Group’s overall cement capacity to 77.40 MTPA. The group aims to expand this capacity to 106 MTPA by FY26 through ongoing and planned capital expenditures.
ACCPL operates a 1.3 MTPA cement plant in Nalagarh, Himachal Pradesh, and its subsidiary, Asian Fine Cements Pvt Limited (AFCPL), runs a 1.5 MTPA cement facility in Rajpura, Punjab. The Rajpura plant, with its strategic location, is poised to serve a broad customer base in Himachal Pradesh, Haryana, and Punjab.
ACC and Ambuja Cements have sufficient clinker supplies to support the Rajpura plant, including future expansions.
As of 31 March 2023, the combined turnover of ACCPL and AFCPL stood at ₹308.90 crore.
Kotak Institutional Equities estimates 10% year-on-year growth in cement demand in FY24 on pre-election tailwinds. Its channel checks show that all-India prices increased 3% sequentially in Q3FY24 to ₹401 a bag, led by sharp front-end price hikes in the southern and eastern regions.
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Published: 08 Jan 2024, 12:22 PM IST