Adani Group-run Ambuja Cements has signed an agreement to acquire a grinding unit in Tuticorin for Rs 413.75 crore with a production capacity of 1.5 million of tonnnes per annum (mtpa), the company said in an exchange filing on April 15.
The company, which signed the deal with My Home Industries (MHIPL), will fund the acquisition with internal accruals and it will take the Adani Group’s total cement production capacity to 78.9 mtpa, the filing said.
The stock price gained a mere 0.16 percent to trade at Rs 610.6 at 1:01pm on April 15.
The plant, spread across 61 acres, is located near the Tuticorin Port and has a long-term fly ash supply agreement for raw material sourcing. The company feels it will support expansion of Ambuja’s coastal footprint across southern markets of Tamil Nadu and Kerela, it said.
"We are glad to announce this acquisition, strengthening our foothold in the region and aligning perfectly with our commitment to delivering high-quality products and services to our customers. In addition to the infrastructure and geographical advantages, Ambuja Cements will also inherit the existing dealer network and retain current employees, facilitating a smooth transition and enabling the rapid ramp-up of utilisation,” Ajay Kapur, CEO, cement business, Adani group, said.
JM Financial acted as an exclusive financial advisor to MHIPL on this transaction.
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