Ambuja Cements, the concrete and construction product agency of Adani Cement and part of the various Adani Group, at present revealed the finalizing of a binding association for the acquisition of Orient Cement Ltd (OCL) at an fairness price ofRs 8,100 crore. Ambuja will definitely get 46.8% shares of OCL from its current entrepreneurs and particular public traders. The buy will definitely be fully moneyed by way of inside 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,” said Mr Karan Adani, Director ofAmbuja Cements “By buying OCL, Ambuja is poised to succeed in 100 MTPA cement capability in FY 25. The acquisition will assist to broaden Adani Cement’s presence in core markets and enhance its pan-India market share by 2%. OCL’s property are extremely environment friendly, geared up with railway sidings and properly supported by captive energy crops, renewable power, WHRS and AFR amenities. OCL’s strategic places, high-quality limestone reserves and requisite statutory approvals current a chance to extend cement capability within the close to time period to 16.6 MTPA.
Mr CK Birla, Chairman of Orient Cement and the CK Birla Group, mentioned, “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 means and eight.5 MTPA concrete means along with authorized clearance to lift the clinker means by an extra 6.0 MTPA and concrete means by an extra 8.1 MTPA. In enhancement, OCL moreover has a limestone mining lease in Chittorgarh for establishing an Integrated Unit (IU) with clinker of 4 MTPA and a cut up Grinding Unit (GU) of 6 MTPA inNorth India OCL has really moreover safeguarded a giving in from MPPGCL, Madhya Pradesh for establishing a Grinding Unit throughout the amenities ofSatpura Thermal Power Plant Both these improve the Adani Group’s current concrete affect.
Annexure -1|Existing Cement Assets of Orient Cement Limited|
Annexure– 2|Footprint of Adani Group– Cement group message OCL Acquisition|
OCL has really only in the near past appointed a WHRS in Chittapur IU and stays within the final of appointing 16 MW photo voltaic in Chittapur and three.7 MW photo voltaic inJalgaon OCL’s dependable crops, very impressed teams, stable annual report and well-distributed provider community will definitely be distinctive enhancements to the Adani Group’s current concrete group. OCL’s current suppliers will definitely relocate to Adani Cement’s market community, producing highly effective harmonies.
Ambuja prepares to boost OCL’s whole means utility to spice up its expense and competitors and increase its working effectivity whereas leveraging the harmonies integral within the current concrete group.
