Adani Cement Acquires Orient Cement

23 Oct 2024 , 10:11 AM

Adani Cement intensified the battle for market share on Tuesday when it announced the buyout of CK Birla Group’s Orient Cement at an equity value of 8,100 crore.

The cement industry is highly regionalised and freight-intensive, which is also the second largest in the world by both installed capacity and consumption.

With around 34 million tonnes of capacity shifting in favour of the two market leaders, UltraTech Cement and Adani Cement, this is the third agreement in the Indian cement industry this fiscal year.

At ₹395.40 per share, Ambuja Cements would purchase the promoter’s 37.90% ownership of Orient Cement together with an additional 8.90% from the company’s public shareholders.

After then, the business will make an open offer to buy an additional 26% of the business for the same sum. Internal accruals will provide all of the funding for the transaction.

With a combined production capacity of 8.5 million tonnes (mt) across three operational units in Maharashtra, Telangana, and Karnataka, Orient Cement now has the statutory authorisation to expand its production capacity by an additional 8.1 mt. Additionally, it has excellent limestone sources in Chittorgarh, Rajasthan, where an extra 6 mt of capacity might be installed.

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