Ambuja Cements to acquire 1.5 MTPA grinding unit at Tuticorin for Rs 413.75 crore

Ambuja Cements said that it has signed a definitive agreement to acquire My Home Group's 1.5 million tones per annum (MTPA) Cement Grinding Unit in Tuticorin, Tamil Nadu.

The acquisition estimated at a total value of Rs. 413.75 Crores through internal accruals will aid in enhancing the coastal footprint across southern markets of Tamil Nadu and Kerela.

"The total cement capacity of Adani Group stands at 78.9 MTPA, the company said in a statement.

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 said that it 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. Furthermore, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with coastal movement of clinker from the Sanghipuram Plant ensuring cost-efficient operations.

Ajay Kapur, CEO Cement Business, Adani Group, 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."

Ambuja Cements is engaged in the business to manufacture and market cement and cement related products.

The companys consolidated net profit surged 89.5% to Rs 823.05 crore on 2.8% increased in revenue from operation to Rs 8,128.80 crore in Q3 FY24 over Q3 FY23.

The scrip was down 0.02% to currently trade at Rs 609.55 on the BSE.

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