ACC acquires Asian Concretes & Cements for Rs 775 crore

Adani Group-owned cement and building materials company ACC has fully acquired Asian Concretes and Cements (ACCPL) from its existing promoter at an enterprise value of Rs 775 crore. ACC held 45 per cent in ACCPL, and subsequently acquired the remaining 55 per cent, resulting in entire ownership of ACCPL.

As per the company, the enterprise value includes cash and cash equivalent of Rs 35 crore. The entire acquisition is funded through internal accruals. The company stated that the complete acquisition will bolster the market leadership of ACC as well as Ambuja Cements in the North India market.

ACC shares were last seen trading 1.30 per cent lower at Rs 2,346.40. At this price, the stock has slipped 4.71 per cent in a year.

This move will enhance ACC’s cement capacity and progress on the overall target of 140 MTPA capacity of Adani’s cement business by 2028 from the current 77.40 MTPA.

ACCPL has 1.3 MTPA cement capacity in Himachal Pradesh’s Nalagarh, while its subsidiary Asian Fine Cements has 1.5 MTPA cement capacity in Punjab’s Rajpura. Rajpura plant’s capacity will cater to a vast customer base across Himachal Pradesh, Haryana and Punjab. ACC and Ambuja Cements possess sufficient clinker to support the Rajpura plant as well as its future expansions.

Adani Group’s cement capacity is poised to reach 106 MTPA by FY2026.

ACC, an Ambuja Cements subsidiary, and part of Adani Cement, operates 20 cement manufacturing sites and over 82 concrete plants across India. ACC is the first Indian cement company to sign the net zero pledge.

Also read: Ambuja Cements to invest Rs 6,000 crore in renewable power projects

Published on: Jan 08, 2024, 11:49 AM IST

Posted by: anwesha madhukalya, Jan 08, 2024, 11:37 AM IST