ACC, the cement and building material company of Adani Group, has agreed to acquire 55% equity stake in Asian Concretes and Cements (ACCPL) for Rs 425.96 crore, the company said in a BSE filing.
It has existing holding of 45% equity stake in the company.Entire acquisition is funded through internal accruals and upon completion of the acquisition ACCPL will become a wholly-owned subsidiary of the company.
The complete deal has taken place at an enterprise value of Rs. 775 crore, which includes cash & cash equivalent of Rs 35 crore. The investment is in line with the company’s strategy to increase its footprint in the cement manufacturing market.
ACCPL has 1.3 MTPA cement capacity in Nalagarh (Himachal Pradesh), while its subsidiary Asian Fine Cements (AFCPL) has 1.5 MTPA cement capacity in Rajpura (Punjab).
Ajay Kapur, WTD and CEO of ACC said, “While ACC has an existing tolling arrangement with the Nalagarh unit, Rajpura plant’s additional 1.5 MTPA capacity will strategically cater to a vast customer base across three states – Himachal Pradesh, Haryana, and Punjab.”
Consolidated turnover of ACCPL along with its subsidiary AFCPL as on March 31, 2023 was Rs 308.90 crore.
This increases ACC’s cement capacity to 38.55 MTPA, and together with its parent company Ambuja, cement capacity stands increased to 76.10 MPTA.
With ongoing and planned capital expenditure investments, the Adani Group’s cement capacity is expected to reach 106 MTPA by FY26.