Ambuja Cement secures 24 limestone mines in FY24
Cement

Ambuja Cement secures 24 limestone mines in FY24

Ambuja Cements, a firm under the Adani group's umbrella, has been actively pursuing expansion efforts. According to the company's annual report, it has secured 24 bids for new limestone mines, which are estimated to hold a total resource of 587 million tonnes of limestone.

Additionally, last November, the Adani-owned firm acquired Sanghi Industries, based in Saurashtra, which boasted reserves of 1 billion tonnes of limestone, valued at Rs 5,185 crore.

The company emphasized the importance of winning bids for coal and limestone mines to achieve self-sufficiency. It pointed out that coal mines in Dahegaon-Gowari and the existing Gare Palma coal block currently cater to 40% of Ambuja Cements Ltd (ACL)'s coal requirements.

The Adani group has set a goal to reach a capacity of 140 million tonnes per annum (MTPA) by 2028, leveraging its ample cash reserves for brownfield expansions and acquisitions.

Recently, the group announced the acquisition of Penna Cement based in Hyderabad, valued at Rs 10,422 crore. This acquisition will add 14 MTPA to ACL's capacity, bringing it to a total of 89 MTPA. The transaction, completed entirely in cash, aims to strengthen ACL's market position in the South and facilitate entry into Sri Lanka.

During an analyst call following the acquisition, ACL's CFO Vinod Bahety indicated that even after this substantial investment, the company would still hold approximately Rs 10,000 crore in cash by year-end.

Bahety explained, "Given our strong cash position, the acquisition of Penna Cement represents a strategic deployment of our resources, yielding a return on capital employed of more than 15%."

He further projected, "The entire acquisition will be financed through our existing cash reserves. Even after this, I estimate that we will retain over Rs 10,000 crores in cash by the end of this year."

Ambuja Cements, a firm under the Adani group's umbrella, has been actively pursuing expansion efforts. According to the company's annual report, it has secured 24 bids for new limestone mines, which are estimated to hold a total resource of 587 million tonnes of limestone. Additionally, last November, the Adani-owned firm acquired Sanghi Industries, based in Saurashtra, which boasted reserves of 1 billion tonnes of limestone, valued at Rs 5,185 crore. The company emphasized the importance of winning bids for coal and limestone mines to achieve self-sufficiency. It pointed out that coal mines in Dahegaon-Gowari and the existing Gare Palma coal block currently cater to 40% of Ambuja Cements Ltd (ACL)'s coal requirements. The Adani group has set a goal to reach a capacity of 140 million tonnes per annum (MTPA) by 2028, leveraging its ample cash reserves for brownfield expansions and acquisitions. Recently, the group announced the acquisition of Penna Cement based in Hyderabad, valued at Rs 10,422 crore. This acquisition will add 14 MTPA to ACL's capacity, bringing it to a total of 89 MTPA. The transaction, completed entirely in cash, aims to strengthen ACL's market position in the South and facilitate entry into Sri Lanka. During an analyst call following the acquisition, ACL's CFO Vinod Bahety indicated that even after this substantial investment, the company would still hold approximately Rs 10,000 crore in cash by year-end. Bahety explained, Given our strong cash position, the acquisition of Penna Cement represents a strategic deployment of our resources, yielding a return on capital employed of more than 15%. He further projected, The entire acquisition will be financed through our existing cash reserves. Even after this, I estimate that we will retain over Rs 10,000 crores in cash by the end of this year.

Next Story
Real Estate

Mahindra Lifespaces Bags Rs 12.5 billion Redevelopment in Mulund

Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has been appointed as the preferred developer for the redevelopment of a premium housing society in Mulund (West), Mumbai. The project will be developed across a 3.08-acre land parcel, with an estimated development value of approximately Rs 12.5 billion. Strategically located, the site enjoys proximity to major connectivity points—just 1.4 km from the upcoming Mumbai Metro Line 5 and 0.8 km from the Goregaon-Mulund Link Road. It also offers seamless access to the Eastern Expre..

Next Story
Infrastructure Urban

Snowman Adds Warehouses in Kolkata and Krishnapatnam

Snowman Logistics, India’s leading integrated temperature-controlled logistics company, has announced the commencement of operations at its two new state-of-the-art, owned cold storage facilities in Kolkata and Krishnapatnam. With these additions, the company’s total pallet capacity has reached 1,50,754, spanning 43 warehouses in 20 cities across the country. The newly operational Kolkata facility offers a storage capacity of 5,630 pallets, while the Krishnapatnam facility holds 3,927 pallets. These warehouses are equipped with advanced automation and infrastructure designed to enhanc..

Next Story
Resources

Noesis Enables IHCL Hotel Deal in Udupi–Manipal Corridor

NOESIS Capital Advisors, India’s leading hotel investment advisory firm, has successfully facilitated a landmark hospitality transaction in the Udupi–Manipal region of Karnataka. The deal involves the acquisition of a nearly completed, 130-key upscale hotel that will operate under one of the premium brands of IHCL, reinforcing NOESIS’ position as a preferred partner for strategic hospitality transactions across India. Strategically located on the Udupi–Manipal Highway, the 1.03-acre property will cater to business travellers, pilgrims and families visiting Manipal University. With..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?