Business

Adani Acquires Orient Cement For Rs 8,100 Crore; Expanding Cement Capacity

Ambuja Cements, a subsidiary of Adani Cement and part of the Adani Group, has announced its acquisition of a 46.8% stake in Orient Cement Ltd (OCL) for an equity value of Rs 8,100 crore.

This strategic move is to bolster Ambuja’s cement capacity by 16.6 million tonnes per annum (MTPA), comprised of 8.5 MTPA currently operational and an additional 8.1 MTPA ready for execution.

Karan Adani, Director of Ambuja Cements, highlighted that this acquisition significantly accelerates the company’s growth trajectory. He emphasized that the goal is to reach over 100 MTPA of operational capacity by FY 2025.

He stated, “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. By acquiring OCL, Ambuja is likely to reach 100 MTPA cement capacity in FY 25. The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by 2%.”

Orient Cement, with a current operational capacity of 8.5 MTPA and clinker capacity of 5.6 MTPA, possesses essential infrastructure, including a 95 MW captive power plant (CPP) and 33 MW of renewable energy sources.

The company has also secured the necessary concessions to establish a 2.0 MTPA cement grinding unit at the Satpura Thermal Power Station in Madhya Pradesh, further extending its operational footprint.

Confident In Adani Group’s Leadership For OCL Growth, Says CK Birla

Meanwhile, CK Birla, Chairman of Orient Cement, expressed confidence in the Adani Group’s capability to lead OCL into a new era of growth.

“The CK Birla Group is continuously reallocating capital to sharpen its focus on consumer centric, technology driven and service-based businesses. I take pride in Orient Cement’s impressive track record of building premium brands and maintaining a leading market share in the geographies it operates in. We are confident that the Adani Group, with its strong focus on cement and infrastructure, is the ideal new owner to drive continued growth at Orient Cement for our people and stakeholders,” he asserted.

Additionally, Co-Chairman Amita Birla emphasized the importance of sustainability within OCL, stating, “Orient Cement has a strong market presence, with sustainability initiatives, particularly in renewable energy, being a significant part of its DNA. I am convinced that Ambuja Cements is the right home for all our colleagues at Orient Cement, as well as our customers.”

The acquisition positions Ambuja to leverage OCL’s high-quality limestone reserves located in Chittorgarh, Rajasthan, which present opportunities for additional capacity expansion in North India.

The existing infrastructure, including railway sidings and captive power plants, will contribute to improved logistics and reduced costs for the cement business.

Ambuja plans to utilize internal accruals to fund the acquisition, ensuring that it remains debt-free while enhancing overall operational efficiencies.

The integration of OCL’s dealers into Ambuja’s extensive market network is likely to create significant synergies and improve competitive positioning in the cement market.

Ambuja Cements Ltd (ACL)

Ambuja Cements Ltd, recognized as one of India’s leading cement manufacturers, boasts a comprehensive portfolio that includes ACC Ltd, Penna Cement Industries Ltd, and Sanghi Industries Ltd.

The Adani Group’s cement capacity now stands at 88.9 MTPA, with plans for further expansion to meet growing demand in the construction sector.

Ambuja Cements has a long-standing reputation for sustainable development and environmentally friendly practices in the cement industry.

With multiple awards, including recognition as one of India’s Most Trusted Cement Brands and inclusion in India’s Top 50 Most Sustainable Companies, Ambuja continues to lead the charge in innovation and responsible business practices.

The company has established an extensive network of integrated manufacturing plants, grinding units, and bulk terminals across the country, ensuring efficient and timely delivery of its products to customers.

Also Read: India’s Economy Set For 7.2% GDP Growth In 2024-25, Says RBI Governor Shaktikanta Das

Mankrit Kaur

Recent Posts

SC Expresses Displeasure Over Delay In Nithari Murder Case Hearing

The Supreme Court criticized the CBI and UP government for seeking to delay the hearing…

16 mins ago

SC Reserves Verdict On BRS MLAs’ Disqualification; Criticizes Telangana CM

The Supreme Court has reserved its decision on the petition seeking the disqualification of BRS…

21 mins ago

Gautam Adani Visits Kanpur Defence Facility; Highlights Commitment To Self-Reliance

On 5 March, Adani Group Chairman Gautam Adani visited Adani Defence in Kanpur, praising its…

25 mins ago

Indian Religious Heritage Finds Global Spotlight With PM Modi

During his Thailand visit, PM Modi witnessed 'Ramakien', the Thai version of 'Ramayana', a key…

1 hour ago

Rouse Avenue Court Issues Notice To ED In AgustaWestland Case

Rouse Avenue Court has issued a notice to the ED and sought its response to…

2 hours ago

Gautam Adani Visits Navi Mumbai Airport Site; Set For Mid-2025 Launch

Gautam Adani on 16 March visited the Navi Mumbai International Airport, which is nearing completion…

2 hours ago