Asian Concrete & Cements' whole ownership will be acquired by Adani-owned ACC

Asian Concrete & Cements' whole ownership will be acquired by Adani-owned ACC

Asian Concrete & Cements' whole ownership will be acquired by Adani-owned ACC

According to a BSE filing by the business, the purchase is value accretive since it would balance Adani Cement's clinker plants in North India.

On January 8, Adani-owned ACC Ltd announced that it will buy the remaining 55% of Asian Concretes and Cements Pvt Ltd (ACCPL) from the current promoter for an enterprise value of Rs 775 crore. The cement and building materials company expressed a desire for this acquisition. Boost capacity in the face of high demand. At the moment, ACC has a 45 percent share in the business.

According to a BSE filing by the business, the purchase is value accretive since it would balance Adani Cement's clinker plants in North India. The business said in a BSE filing that all of the funding for the transaction would come from internal accruals.

Experts anticipate that the nation's major cement manufacturers will keep acquiring smaller businesses and merging in order to maintain their market dominance and make money off of anticipated robust demand brought on by more infrastructure investment.

Ajay Kapoor, the chief executive officer of ACC, said that "this acquisition strengthens the market leadership of Ambuja as well as ACC, taking Adani Particular group's total cement capacity to 77.40 MTPA (million tonnes per annum)".

The Adani Group's cement capacity is anticipated to exceed 106 MTPA by FY2026 with existing and planned CAPEX expenditures, according to Kapoor.

With the $10.6 billion purchase of India's second-largest cement company, Ambuja Cement as well as ACC, from Switzerland's Holcim Group last year, billionaire Gautam Adani made an explosive debut into the cement market, bringing with him a tough competitor.

ACCPL has thirty-five crores rupees in cash and cash equivalents. With its subsidiary Asian Fine Cements Pvt Ltd, they have a total cement capacity of 2.8 MTPA, corresponding to the statement.

ACC now operates more than 82 concrete factories and 20 cement producing facilities. By 2028, the firm wants to have grown Adani's cement industry to a capacity of 140 MTPA.