New Delhi : Gautam Adani's group is taking some new steps every day to expand its business in the cement sector. In this context, news is coming that this leading business group has recently finalized its business deal with another cement company.
To emerge as the largest company in the cement sector, Adani Group has announced a deal to acquire CK Birla Group company Orient Cement with a valuation of Rs 8,100 crore as part of its expansion drive.
MOU signed
Adani Cement's cement and manufacturing materials company and Ambuja Cements, part of the diversified Adani Group, have signed an agreement to acquire Orient Cement Limited (OCL) for a share price of Rs 8,100 crore. According to the joint statement, its 'step down' entity “Ambuja will acquire 46.8 per cent shares of OCL from its existing promoters and certain public shareholders.”
Presence in cement will increase
Karan Adani, Director, Ambuja Cements, said that this timely acquisition of Orient Cement can prove to be an important step in the rapid growth journey of Ambuja Cements. This can lead to a huge increase in the capacity of Ambuja Cements. Following the deal with Orient Cement Limited, Ambuja Cements is set to reach its cement manufacturing capacity target in financial year 2025-25. After this deal, Adani Group's presence in the cement market can increase and it can help in increasing the share of Adani Group in the cement sector by 2 percent.
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Confidence in new transformation
Orient Cement and CK Birla Group Chairman CK Birla has expressed confidence in this new transformation. He also said that CK Birla Group is continuously reallocating capital to focus its attention on consumer-centric, technology operating and service-based businesses.
ideal new owner
After this deal, CK Birla said, I am proud of Orient Cement's impressive track record of building premium brands and maintaining leading market share across the geographies where it operates. “We are confident that the Adani Group, a leader in the cement and infrastructure sectors, is the ideal new owner to drive continued growth for our people and stakeholders in Orient Cement.”
Adani Cement Capacity
The acquisition will be entirely financed from internal accruals, it said. Adani Cement's capacity will increase by 16.6 million tonnes per annum with the latest acquisition. Adani Cement operates in this region through Ambuja Cements.
(with agency input)
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