Ambuja Cements, Adani group firm which is forcefully pushing for extension, has won 24 offers for new limestone mines assessed to have an all-out asset of 587 million tons of limestone, as indicated by the organization’s yearly report.
“Winning bids for coal and limestone mines is critical to ensure self-sufficiency, with coal mines in Dahegaon-Gowari and the existing Gare Palma coal block catering to 40 per cent of Ambuja Cements Ltd (ACL) coal requirements”, the report stated.
This is in addition to the 1 billion tonnes of reserve held by Sanghi Industries, a Saurashtra-based company that was purchased in November by a company owned by billionaire Gautam Adani for Rs 5,185 crore.
The Adani bunch has a desire to have a limit of 140 MTPA (million tons for every annum) by 2028.
It has adequate finance to arrive at there through a mix of brownfield expansion and acquisitions. Adani Group announced earlier this month that it had acquired Hyderabad-based Penna Cement for Rs 10,422 crore. This acquisition will give the growth-hungry ACL an additional 14 MTPA, bringing rise to its total revenue and capacity to 89 MTPA.
ACL CFO Vinod Bahety stated that even after this acquisition of Penna Cement, which will assist it in increasing its share in the Southern market and entry into Sri Lanka, it will be holding another Rs 10,000 crore cash by the end of this year. This was an all-cash transaction, and it was discussed during the analyst call that followed the transaction.
“ Since you all know that we have been sitting on good cash and cash equivalent, it will be a good deployment of this amount and earning much more than 15 per cent in terms of ROCE (Return on capital employed). The entire acquisition will be funded through cash and cash equivalents. After all of this also, by end of this year, my estimate is that we will be holding almost Rs 10,000 plus crores of cash”, Bahety added.
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