Ambuja Cements, the cement and building material company of Adani Cement, has signed a binding agreement for the acquisition of Orient Cement (OCL) at an equity value of Rs 8,100 crore. The company will acquire 46.8% shares of OCL from its current promoters and certain public shareholders. The acquisition will be fully funded through internal accruals.
“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 poised to reach 100 MTPA cement capacity in FY25. The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by 2%.
OCL’s strategic locations, high-quality limestone reserves and requisite statutory approvals present an opportunity to increase cement capacity in the near term to 16.6 MTPA,” said Karan Adani, director of Ambuja Cements.
OCL has 5.6 MTPA clinker capacity and 8.5 MTPA cement capacity along with statutory clearance to increase the clinker capacity by another six MTPA and cement capacity by another 8.1 MTPA. In addition, OCL also has a limestone mining lease in Chittorgarh for setting up an Integrated Unit (IU) with clinker of four MTPA and a split Grinding Unit (GU) of six MTPA in North India.
It has also secured a concession from MPPGCL, Madhya Pradesh for setting up a grinding unit within the premises of Satpura Thermal Power Plant.
The company has recently commissioned a WHRS in Chittapur IU and is in the final stage of commissioning 16 MW solar in Chittapur and 3.7 MW solar in Jalgaon.
