8 Jan 2024 , 12:58 PM
ACC Ltd, a subsidiary of Adani-owned Ambuja Cement Ltd, has acquired the remaining 55% stake in Asian Concretes and Cements Private Ltd (ACCPL) for Rs 425.96 crore.
The buyout, entirely funded by internal accruals, brings ACC’s ownership of ACCPL to 100%, with the total enterprise value of the acquisition at Rs 775 crore, including Rs 35 crore in cash and equivalent.
The acquisition supports ACC’s growth strategy and commitment to value creation for stakeholders, according to Ajay Kapur, CEO of ACC Ltd.
ACC’s total cement production capacity increases to 38.55 MTPA with this acquisition, and combined with Ambuja, the Adani Group’s overall cement capacity rises to 77.40 MTPA.
The group aims to expand its 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, AFCPL, runs a 1.5 MTPA cement facility in Rajpura, Punjab.
The Rajpura plant strategically serves a broad customer base in Himachal Pradesh, Haryana, and Punjab, and ACC and Ambuja Cements have sufficient clinker supplies for the plant, including future expansions.
As of March 31, 2023, the combined turnover of ACCPL and AFCPL was Rs 308.90 crore.
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