ACC-Ambuja Cement’s EBITDA increases to Rs 1,350/tonne post-Adani takeover

18 Dec 2023 , 11:54 AM

According to reports, since Adani Group acquired ACC and Ambuja Cement, the EBITDA has increased to Rs 1,350 a tonne from Rs 350, and the group plans to increase it to Rs 1,400 by 2024. Adani Group purchased Ambuja Cement Ltd and ACC Ltd last year to diversify its verticals.

Ambuja Cement has a cement capacity of 31 million tonnes per year and operates six integrated cement production facilities and eight cement grinding units around the country. With 17 cement production units and 85 ready-mix concrete plants, ACC has a cement capacity of 34.45 million tonnes.

Adani now competes directly with Ultratech Cement, India’s largest cement maker, as a result of the acquisition. Adani Group is also intending to increase its annual cement production capacity by 2027. According to sources, after taking over in September 2022, the EBITDA per tonne of cement has improved from Rs 350 to Rs 1,350, and this would be scaled up to Rs 1,400 per tonne by 2024.

The present EBITDA margin is at 20%, and it plans to increase it to around 25%. According to sources, the firm hopes to sell 120 million tonnes by March 2028. The goal is to generate Rs 70,000 crore in revenue and Rs 17,500 crore in EBITDA. At those values, EBITDA per tonne will be close to Rs 1,450, implying a margin of roughly 25%.

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