NEW DELHI: Gautam Adani-led Adani Group announced on Tuesday that it will acquire CK Birla Group’s Orient Cement in a deal valued at Rs8,100 crore as part of its ongoing expansion.
Adani Cement’s subsidiary, Ambuja Cements, signed a binding agreement to acquire 46.8 per cent of Orient Cement Ltd (OCL) from its current promoters and select public shareholders.
The acquisition, valued at Rs8,100 crore, will be fully funded through internal accruals, according to a joint statement.
To add 16.8 MTPA
The acquisition will add 16.6 million tonnes per annum (MTPA) to Adani Cement’s capacity, which currently operates through Ambuja Cements.
This move follows the group’s recent acquisition of Hyderabad-based Penna Cement in June for Rs10,422 crore, which contributed 14 MTPA to Adani’s capacity.
Karan Adani, Director of Ambuja Cements, called the acquisition a “significant step” in the company’s accelerated growth strategy, pushing cement capacity by approximately 30 MTPA within two years of Ambuja’s acquisition.
He noted that Ambuja is on track to reach 100 MTPA cement capacity by FY25.
The acquisition is expected to strengthen Adani Cement’s presence in core markets and increase its pan-India market share by 2 per cent.
OCL’s assets include a 5.6 MTPA clinker capacity and an 8.5 MTPA cement capacity, with statutory clearance to further expand its clinker capacity by 6 MTPA and cement capacity by 8.1 MTPA.
