The 1.5 MTPA cement grinding mill owned by My Home Group in Tuticorin, Tamil Nadu, will be purchased by Adani Group companies Ambuja Cements and Building Materials for a sum of ₹413.75 Crore.
It is anticipated that the acquisition will expand the company's presence in Tamil Nadu and Kerala, two southern markets.
The facility, which has 61 acres and is well situated close to Tuticorin Port, will provide value right away thanks to a long-term fly ash arrangement, the business said in a statement.
Additionally, the statement said that Tamil Nadu's restricted supply of limestone offers a distinct competitive advantage, with the maritime transit of clinker from the Sanghipuram plant guaranteeing economical operations.
"We are happy to announce this acquisition, strengthening our foothold in the region and perfectly aligning with our commitment to delivering high-quality products and services to our customers," stated Ajay Kapur, CEO of Adani Group's cement business. Ambuja Cements will keep its current workforce and inherit the current dealer network in addition to the infrastructure and geographic advantages. This will allow for a seamless transition and a quick ramp-up in usage.
For the third quarter of FY24, Ambuja Cements reported a standalone net profit of ₹513.69 Crore, up 39.2% from ₹368.99 Crore in the same quarter the previous year.
The standalone revenue from operations of Ambuja Cements climbed 7.5% YoY to ₹4,439.5 Crore from ₹4,128.5 Crore in Q3FY24. Compared to the same period previous year, its sales volume increased to 8.2 million tonnes from 7.7 million tonnes.
Operating profits for the company increased by 33% to ₹851.1 Crore from ₹638.2 Crore in the December quarter. Additionally, EBITDA margin increased by 370 basis points (bps) to 19.2% from 15.5% year over year.
Ambuja Cements Limited is a prominent cement company in India. Ambuja has increased the Adani Group's cement capacity to 78.9 MTPA alongside its subsidiaries ACC Ltd and Sanghi Industries Ltd. The Adani Group now has 18 integrated cement manufacturing plants and 19 cement grinding units nationwide.
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