Adani Group Becomes India’s Second Largest Cement Producer

| Updated: September 17, 2022 3:57 pm

World’s richest, just behind No.1, Elon Musk, Gautam Adani’s Conglomerate becomes India’s second largest cement manufacturing entity. The Adani Group has cemented the acquisition of Ambuja Cement and ACC, making the new entity the country’s second-largest cement producer.

Through a special purpose vehicle, Endeavour Trade and Investment Ltd, the Adani group had successfully completed the acquisition of Ambuja Cements Ltd and ACC Ltd. The acquisition includes Holsim’s stake in Ambuja and ACC, as well as an open offer in both companies, in accordance with the SEBI guidelines.

Considering the amount involved in the open offer and Holcim’s stake in Ambuja Cements and ACC, the deal is valued at US$ 6.50 billion. It makes the acquisition, Adani’s largest and India’s largest ever acquisition in the field of infrastructure and materials. Following the transaction, Adani will own 63.15 percent of Ambuja Cement and 56.69 percent of ACC (of which 50.05 percent is held through Ambuja Cement).

On track to become the world’s largest and most efficient cement producer by 2030

“This makes cement an exciting business for India’s growth, which will outpace all other countries after 2050,” said Gautam Adani, Chairman of Adani Group. Cement will enable significant supply chain efficiencies by leveraging digital platforms to transform economics and manufacturing based on energy costs, logistics, and distribution costs.

Furthermore, as one of the world’s largest renewable energy companies, we will be able to produce high-quality green cement that adheres to circular economy principles. All of these parameters indicate that we will be the largest and most efficient cement producer by 2030.” He added.

Ambuja Cements and ACC have a combined installed production capacity of 67.5 MTPA at present. Both companies possess strong brands and condsidrerable manufacturing deptha and supply chain infrastructure. They have 14 integrated units, 16 grinding units, 79 ready-mix concrete plants and over 78,000 channel partners across India. Gautam Adani tweeted:

Ambuja Cements’ board of directors has approved a Rs.20,000 crore investment in Ambuja via preferential warrant allotment. This investment will enable Ambuja to capitalise on market growth. These steps, which are consistent with Adani Group’s business logic, will significantly accelerate the creation of value for all stakeholders.

Thanks to Adani portfolio companies’ extensive experience and deep expertise in the raw materials, renewable energy, and logistics sectors, Ambuja Cements and ACC both are likely to benefit from synergies with the integrated Adani infrastructure platform.

Also Read: Now, Gautam Adani Is The Second Richest Man In The World

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