ACC, a wholly-owned subsidiary of Adani group company Ambuja Cements, has acquired Asian Concretes and Cements at an enterprise value of ₹775 crore.
The company currently owns 45 per cent stake and acquired the remaining stake on Monday. The enterprise value includes cash and cash equivalent of ₹35 crore.
Asian Concretes and Cements has 1.3 mtpa cement capacity in Nalagarh (Himachal Pradesh), while its subsidiary Asian Fine Cements (AFCPL) has 1.5 mtpa cement capacity in Rajpura (Punjab).
The acquisition increases ACC’s cement capacity to 38.55 mtpa , and together with its parent company Ambuja, cement capacity stands increased to 76.10 mtpa , said the company.
The entire acquisition was funded through internal accruals and will help ACC to further bolster market leadership in the lucrative North Indian market.
Enhancing capacity
Ajay Kapur, whole-time director and CEO, ACC, said the move enhances ACC’s cement capacity and progress on the overall target of 140 mtpa capacity of Adani’s cement business by 2028.
While ACC has an existing tolling arrangement with the Nalagarh unit, Rajpura plant’s additional 1.5 mtpa capacity will strategically cater to Himachal Pradesh, Haryana and Punjab.
Moreover, he said ACC and Ambuja Cements has sufficient clinker to support the Rajpura plant.
The acquisition enhances Adani Group’s overall cement capacity to 77.40 mtpa. With ongoing and planned capex, it is poised to reach 106 mtpa by FY 2026.