"ACC Acquires Asian Concretes and Cements in ₹775 Crore Deal"

"ACC, a Subsidiary of Ambuja Cements under Adani Group, Completes ₹775 Crore Acquisition of Asian Concretes and Cements"

In a strategic move to strengthen its market position, ACC, a wholly-owned subsidiary of Adani group company Ambuja Cements, has successfully acquired Asian Concretes and Cements at an enterprise value of ₹775 crore. Having initially held a 45% stake, ACC acquired the remaining share on Monday, with the enterprise value including a cash and cash equivalent of ₹35 crore.

Asian Concretes and Cements boasts a cement capacity of 1.3 million metric tonnes per annum (mtpa) in Nalagarh, Himachal Pradesh, while its subsidiary, Asian Fine Cements (AFCPL), adds an additional 1.5 mtpa cement capacity in Rajpura, Punjab.

With this acquisition, ACC's cement capacity increases to 38.55 mtpa, and when combined with its parent company Ambuja, the overall cement capacity reaches an impressive 76.10 mtpa, according to the company's statement. The funding for the entire acquisition was facilitated through internal accruals, reinforcing ACC's market leadership in the lucrative North Indian market.

Ajay Kapur, the whole-time director and CEO of ACC, expressed the significance of this move, stating that it not only enhances ACC's cement capacity but also contributes to the overall target of achieving a 140 mtpa capacity for Adani's cement business by 2028.

Highlighting the strategic benefits of the acquisition, Kapur mentioned the existing tolling arrangement with the Nalagarh unit and the additional 1.5 mtpa capacity of the Rajpura plant, strategically catering to Himachal Pradesh, Haryana, and Punjab. He assured that ACC and Ambuja Cements have sufficient clinker to support the Rajpura plant.

This acquisition also propels the Adani Group's overall cement capacity to 77.40 mtpa, with ongoing and planned capital expenditures positioning it to reach an impressive 106 mtpa by the fiscal year 2026. The move reinforces the Adani Group's commitment to expanding its presence in the dynamic cement industry.

HBL