Ambuja Cements, the concrete and structure product firm of Adani Cement and component of the varied Adani Group, today revealed the finalizing of a binding arrangement for the purchase of Orient Cement Ltd (OCL) at an equity worth ofRs 8,100 crore. Ambuja will certainly get 46.8% shares of OCL from its existing marketers and specific public investors. The purchase will certainly be completely moneyed via interior amassings.
“This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja’s acquisition,” stated Mr Karan Adani, Director ofAmbuja Cements “By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY 25. The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by 2%. OCL’s assets are highly efficient, equipped with railway sidings and well supported by captive power plants, renewable energy, WHRS and AFR facilities. OCL’s strategic locations, high-quality limestone reserves and requisite statutory approvals present an opportunity to increase cement capacity in the near term to 16.6 MTPA.
Mr CK Birla, Chairman of Orient Cement and the CK Birla Group, said, “The CK Birla Group is continuously reallocating capital to sharpen its focus on consumer centric, technology driven and service-based businesses. I take pride in Orient Cement’s impressive track record of building premium brands and maintaining a leading market share in the geographies it operates in. We are confident that the Adani Group, with its strong focus on cement and infrastructure, is the ideal new owner to drive continued growth at Orient Cement for our people and stakeholders”.
Ms Amita Birla, Co-Chairman, CK Birla Group, included, “Orient Cement has a strong market presence, with sustainability initiatives, particularly in renewable energy, being a significant part of its DNA. I am convinced that Ambuja Cements is the right home for all our colleagues at Orient Cement, as well as our customers.”
OCL has 5.6 MTPA clinker ability and 8.5 MTPA concrete ability together with legal clearance to raise the clinker ability by an additional 6.0 MTPA and concrete ability by an additional 8.1 MTPA. In enhancement, OCL additionally has a limestone mining lease in Chittorgarh for establishing an Integrated Unit (IU) with clinker of 4 MTPA and a split Grinding Unit (GU) of 6 MTPA inNorth India OCL has actually additionally safeguarded a giving in from MPPGCL, Madhya Pradesh for establishing a Grinding Unit within the facilities ofSatpura Thermal Power Plant Both these enhance the Adani Group’s existing concrete impact.
Annexure -1|Existing Cement Assets of Orient Cement Limited|
Annexure– 2|Footprint of Adani Group– Cement organization message OCL Acquisition|
OCL has actually just recently appointed a WHRS in Chittapur IU and remains in the last of appointing 16 MW solar in Chittapur and 3.7 MW solar inJalgaon OCL’s reliable plants, very inspired groups, solid annual report and well-distributed supplier network will certainly be exceptional enhancements to the Adani Group’s existing concrete organization. OCL’s existing suppliers will certainly relocate to Adani Cement’s market network, producing powerful harmonies.
Ambuja prepares to enhance OCL’s total ability application to boost its expense and competition and boost its operating efficiency while leveraging the harmonies integral in the existing concrete organization.
