Ambuja Cements To Acquire Tuticorin Grinding Unit for ₹413.75 Crore

On April 15, 2024, Ambuja Cements informed in an exchange filing that the company has signed a definitive agreement to acquire a 1.5 MTPA Grinding Unit at Tuticorin, Tamil Nadu at a value of ₹413.75 crore.

Details of the Acquisition

On Monday, Ambuja Cements announced that it signed a definitive agreement to acquire My Home Group’s 1.5 MTPA Cement Grinding Unit in Tuticorin, Tamil Nadu. The acquisition is estimated at a total value of ₹413.75 crore through internal accruals and will aid in enhancing the coastal footprint across the southern markets of Tamil Nadu and Kerala. The total cement capacity of Adani Group stands at 78.9 MTPA.

The company stated that 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. Ambuja Cements will leverage the coastal footprint and state-of-the-art marine infrastructure and equipment, ensuring that the best quality products are delivered.

This acquisition provides access to the southern market customers with an opportunity to experience and instil their trust in one of the most iconic and trusted brands – Ambuja Cement. Furthermore, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with the coastal movement of clinker from the Sanghipuram Plant, ensuring cost-efficient operations.

Commenting on the acquisition, the CEO of Cement Business at Adani Group, Mr 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.”

About Ambuja Cements Limited

Ambuja Cements Limited is one of the leading cement companies in India and a member of the

diversified Adani Group, which is the largest and fastest-growing portfolio of diversified businesses.

On April 15, 2024, the share price of Ambuja Cements Ltd opened at ₹600.00, touching the day’s high at ₹615.60, as of 12:18 PM on the NSE.

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