Ambuja Cements acquires 47% stake in Orient Cement for Rs 81 Bn
Cement

Ambuja Cements acquires 47% stake in Orient Cement for Rs 81 Bn

Ambuja Cements, the cement and building material company of the diversified Adani Group, announced to acquire Orient Cement Ltd (OCL) at an equity value of Rs 81 billion. Ambuja will acquire 46.8 % shares of OCL from its current promoters and certain public shareholders and the acquisition will be fully funded through internal accruals, the company said in a statement. The acquisition of OCL complements Ambuja's existing cement footprint, reducing overall lead distances and logistics costs for the cement business and improving market share in our core markets, it said. "This timed acquisition marks another significant step forward in Ambuja Cements' accelerated growth journey, increasing cement capacity by 30 million tonnes per annum (MTPA) within two years of Ambuja's acquisition," said Karan Adani, Director of Ambuja Cements. "By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY25. The acquisition will help to expand Adani Cements' presence in core markets and improve its pan-India market share by 2 % ," Karan Adani added. OCL has 5.6 MTPA clinker capacity and 8.5 MTPA cement capacity, along with statutory clearance to increase the clinker capacity by another 6.0 MTPA and cement capacity by another 8.1 MTPA. In addition, OCL also has a limestone mining lease in Chittorgarh for setting up an Integrated Unit (IU) with clinker of 4 MTPA and a split Grinding Unit (GU) of 6 MTPA in North India. "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," said Karan Adani. OCL has secured a concession from MPPGCL, Madhya Pradesh for setting up a Grinding Unit within the premises of the Satpura Thermal Power Plant. Both these complement the Adani Group's existing cement footprint. CK Birla, Chairman of Orient Cement and the CK Birla Group, said they 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. Ambuja, with its subsidiaries ACC Ltd, Penna Cement Industries Ltd and Sanghi Industries Ltd, has taken the Adani Group's cement capacity to 88.9 MTPA, with 20 integrated cement manufacturing plants, 20 cement grinding units and 12 bulk terminals across the country.

Ambuja Cements, the cement and building material company of the diversified Adani Group, announced to acquire Orient Cement Ltd (OCL) at an equity value of Rs 81 billion. Ambuja will acquire 46.8 % shares of OCL from its current promoters and certain public shareholders and the acquisition will be fully funded through internal accruals, the company said in a statement. The acquisition of OCL complements Ambuja's existing cement footprint, reducing overall lead distances and logistics costs for the cement business and improving market share in our core markets, it said. This timed acquisition marks another significant step forward in Ambuja Cements' accelerated growth journey, increasing cement capacity by 30 million tonnes per annum (MTPA) within two years of Ambuja's acquisition, said Karan Adani, Director of Ambuja Cements. By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY25. The acquisition will help to expand Adani Cements' presence in core markets and improve its pan-India market share by 2 % , Karan Adani added. OCL has 5.6 MTPA clinker capacity and 8.5 MTPA cement capacity, along with statutory clearance to increase the clinker capacity by another 6.0 MTPA and cement capacity by another 8.1 MTPA. In addition, OCL also has a limestone mining lease in Chittorgarh for setting up an Integrated Unit (IU) with clinker of 4 MTPA and a split Grinding Unit (GU) of 6 MTPA in North India. 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, said Karan Adani. OCL has secured a concession from MPPGCL, Madhya Pradesh for setting up a Grinding Unit within the premises of the Satpura Thermal Power Plant. Both these complement the Adani Group's existing cement footprint. CK Birla, Chairman of Orient Cement and the CK Birla Group, said they 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. Ambuja, with its subsidiaries ACC Ltd, Penna Cement Industries Ltd and Sanghi Industries Ltd, has taken the Adani Group's cement capacity to 88.9 MTPA, with 20 integrated cement manufacturing plants, 20 cement grinding units and 12 bulk terminals across the country.

Next Story
Infrastructure Energy

Queensland, Australia Backs METS Delegation for India’s Flagship Mining Expo – IME 2025

Trade and Investment Queensland (TIQ) — the Queensland Government’s global business agency — is leading a high-level delegation of mining equipment, technology and services (METS) companies to the International Mining, Equipment & Minerals Exhibition (IME) 2025, being held in Kolkata from October 30 to November 2.The delegation highlights Queensland, Australia’s world-class mining expertise across digital innovation, mine safety, critical-minerals technology, and sustainable mining solutions — aligning with India’s rapid transformation of its mining and resources sector to supp..

Next Story
Infrastructure Urban

ABB India Expands Local Production with New Line for Energy-Efficient Drives

ABB India has announced the expansion of its local manufacturing footprint with the launch of a new production line for variable speed drive (VSD) modules at its Peenya facility in Bengaluru. The new line enhances ABB’s local production capacity for drives by around 25 per cent, supporting the Government of India’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.Equipped with state-of-the-art automation and digital monitoring technologies, the new line is designed to meet the rising demand for energy-efficient and high-performance drives across industries such as buildings, da..

Next Story
Infrastructure Urban

Aimtron Secures International IoT Order Worth $3.9 Million

Aimtron Electronics, one of India’s fastest-growing Electronics System Design and Manufacturing (ESDM) companies, has announced that it has secured a major international IoT order worth $3.946 million (approximately Rs 340.69 million) from a leading global client. The contract involves the manufacture and export of 200,000 IoT devices over the next 12 to 15 months.This order marks a significant milestone in Aimtron’s global expansion, underscoring its capability to deliver complete box-build IoT solutions that meet international quality standards. The deal is expected to strengthen the com..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?