Adani owned Ambuja Cement takes over 1.5 MTPA Cement Grinding Unit in Tuticorin

Ambuja Cement which is owned by Adani Group has declared that, it has locked a deal of acquiring ‘My Home Group’s 1.5 MTPA Cement Grinding Unit in Tuticorin in Tamil Nadu through a definitive agreement. 

In the registered documents, it was added that a total value of Rs. 413.75 crore was estimated through internal accruals will help in enhancing the coastal footprint across southern markets of Tamil Nadu and Kerala. The total cement capacity of Adani Group stands at 78.9 MTPA.

In a regulatory filing the company said, “The asset spread across 61 acres of land, conveniently located near the Tuticorin Port with a long-term fly ash agreement will be value accretive from the beginning.” 

The whole area is expanded across 61 acres of land, conveniently located near the Tuticorin Port with a long-term fly ash agreement will be value accretive from the beginning. Ambuja Cements said that it will leverage the coastal footprint and state-of-the-art marine infrastructure and equipment, ensuring that the best quality products are delivered.

This acquisition is one of the most significant step of the company as it will provide them a wide chance to get hold on the south Indian Market. Also, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with coastal movement of clinker from the Sanghipuram Plant ensuring cost-efficient operations.

The CEO of Cement Business, Adani Group, Ajay Kapur 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.”

Ambuja Cement consolidated net profit surged 89.5% to Rs. 823.05 crore on 2.8% increased in revenue from operation to Rs. 8,128.80 crore in Q3 FY24 over Q3 FY23. The scrip was down 0.02% to currently trade at Rs. 609.55 on the BSE.